Red River UK Ltd & Anor v Sheikh & Anor

Red River UK Ltd & Anor v Sheikh & Anor

Red River failed to prove on the balance of probabilities that it would have been able to obtain development finance and redevelop the Property, even if the Sheikhs had not breached the contract. The loss of profit claim therefore fails. Additional interest and charges incurred due to inability to refinance are...

Source-derived case information.

Parties
Claimant: Red River UK Limited; Claimant: Ismail Dogan; Defendant: Anal Sheikh; Defendant: Rabia Sheikh
Jurisdiction
England and Wales
Judgment Date
17 May 2010
Procedural Posture
Civil / Judgment on Causation and Quantum
Outcome
Claim for loss of profit dismissed; claim for additional interest and charges allowed subject to inquiry; Cluttons fee claim dismissed; counterclaim dismissed.
Legal Topics
Damages for Breach of Contract, Causation, Loss of Profit, Development Finance, Planning Permission
Contract Law Damages for Breach of Contract Causation Loss of Profit Development Finance Planning Permission

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Parties

Red River UK Limited

Claimant

Ismail Dogan

Claimant

Anal Sheikh

Defendant

Rabia Sheikh

Defendant

Procedural Posture

Civil / Judgment on Causation and Quantum

Legal Issues

  1. 1 Whether Red River would have been able to redevelop the Property if refinancing had completed
  2. 2 Whether Red River would have obtained development finance
  3. 3 Whether loss of profit is recoverable

Ratio Decidendi

Red River failed to prove on the balance of probabilities that it would have been able to obtain development finance and redevelop the Property, even if the Sheikhs had not breached the contract. The loss of profit claim therefore fails. Additional interest and charges incurred due to inability to refinance are recoverable, but the Cluttons valuation fee is not. The Sheikhs’ amended counterclaim is dismissed as wholly without merit.

Court Disposition

Claim for loss of profit dismissed; claim for additional interest and charges allowed subject to inquiry; Cluttons fee claim dismissed; counterclaim dismissed.

Orders

  • Inquiry before the Master to quantify damages for additional interest and charges if pursued by Red River.
  • All other claims and counterclaims dismissed.