Acute Property Developments Ltd v Apostolou & Ors

Acute Property Developments Ltd v Apostolou & Ors

Dr. Savouri cannot treat 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 but on personal trust. Unexplained requests to pay third parties are outside the usual authority of a manager and not within apparent authority.

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
Dr. Savouri's payments did not discharge his liability to Acute for the building work, except to the extent payments were actually passed to Acute.
Legal Topics
Apparent Authority, Ostensible Authority, Estoppel, Fraud, Payment Discharge
Company Law Agency Law Contract Law Apparent Authority Ostensible Authority Estoppel Fraud Payment Discharge

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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 Extent of apparent or ostensible authority of a general manager to direct payment to third parties

Ratio Decidendi

Dr. Savouri cannot treat 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 but on personal trust. Unexplained requests to pay third parties are outside the usual authority of a manager and not within apparent authority.

Court Disposition

Dr. Savouri's payments did not discharge his liability to Acute for the building work, except to the extent payments were actually passed to Acute.

Orders

  • Declaration that Dr. Savouri remains liable to Acute for the building work at Shirley Road, save to the extent payments were passed to Acute.
  • Quantum of liability to be determined at a further hearing if not agreed.