Acute Property Developments Ltd v Apostolou & Ors [2013] EWHC 200 (Ch) (19 February 2013)

Acute Property Developments Ltd v Apostolou & Ors [2013] EWHC 200 (Ch) (19 February 2013)

Dr. Savouri is not entitled to treat the payments made to Mrs. Apostolou and Acute Mortgages as payments to Acute because Mr. Apostolou had no actual authority to direct such payments, and Dr. Savouri did not rely on any representation of apparent authority by Acute but rather on his personal trust in Mr. Apostolou. Therefore, the payments did not discharge Dr. Savouri's liability to Acute for the building work.

Citation
[2013] EWHC 200 (Ch)
Parties
Claimant: Acute Property Developments Limited; Defendant: Andrew Apostolou; Defendant: Lucy Apostolou; Defendant: Savvas Savouri; Defendant: Healys (a firm); Defendant: Doverhaul Estates Limited; Defendant: Timothy Dean
Jurisdiction
England and Wales
Judgment Date
19 February 2013
Procedural Posture
Civil / Trial Judgment
Outcome
For the claimant (Acute Property Developments Limited) on the main issue; quantum to be determined at a further hearing.
Legal Topics
Apparent Authority, Ostensible Authority, Agency Estoppel, Fraudulent Misrepresentation, Payment to Third Parties, Liability for Agent's Acts
Contract Law Agency Law Company Law Apparent Authority Ostensible Authority Agency Estoppel Fraudulent Misrepresentation Payment to Third Parties +1 more

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Parties

Acute Property Developments Limited

Claimant

Andrew Apostolou

Defendant

Lucy Apostolou

Defendant

Savvas Savouri

Defendant

Healys (a firm)

Defendant

Doverhaul Estates Limited

Defendant

Timothy Dean

Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Whether payments made by Dr. Savouri to third parties at the direction of Mr. Apostolou discharged his liability to Acute for building work.
  2. 2 Whether Mr. Apostolou had actual or apparent authority to direct payment to third parties on behalf of Acute.

Ratio Decidendi

Dr. Savouri is not entitled to treat the payments made to Mrs. Apostolou and Acute Mortgages as payments to Acute because Mr. Apostolou had no actual authority to direct such payments, and Dr. Savouri did not rely on any representation of apparent authority by Acute but rather on his personal trust in Mr. Apostolou. Therefore, the payments did not discharge Dr. Savouri's liability to Acute for the building work.

Court Disposition

For the claimant (Acute Property Developments Limited) on the main issue; quantum to be determined at a further hearing.

Orders

  • Declaration that Dr. Savouri's payments to Mrs. Apostolou and Acute Mortgages did not discharge his liability to Acute for the building work, except to the extent any sums were actually passed to Acute.
  • All issues relating to quantum to be determined at a further hearing if not agreed.