Bellway Homes Ltd v Beazer Homes Ltd

Bellway Homes Ltd v Beazer Homes Ltd

The shareholders agreement and the parties' course of dealing did not confine balancing of allocations to a single development. The final allocation at Cramlington did not achieve the intended balance due to area 3A being undevelopable at the date of disposal. Bellway is entitled to a further allocation from Middle Warren to rectify the imbalance.

Parties
Claimant: Bellway Homes Limited; Defendant: Beazer Homes Limited
Jurisdiction
England and Wales
Judgment Date
04 March 2010
Procedural Posture
Civil / Judgment on Preliminary Issue
Outcome
Declaration granted in favour of Bellway
Legal Topics
Shareholders Agreement, Joint Venture, Development Land Allocation, Remedies—declaration
Company Law Contract Law Shareholders Agreement Joint Venture Development Land Allocation Remedies—declaration

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Bellway Homes Limited

Claimant

Beazer Homes Limited

Defendant

Procedural Posture

Civil / Judgment on Preliminary Issue

Legal Issues

  1. 1 Whether Bellway is entitled to an allocation of development land at Middle Warren to rectify an imbalance in developable land allocation at Cramlington under the shareholders agreement
  2. 2 Whether the final allocation at Cramlington was conclusive or subject to adjustment

Ratio Decidendi

The shareholders agreement and the parties' course of dealing did not confine balancing of allocations to a single development. The final allocation at Cramlington did not achieve the intended balance due to area 3A being undevelopable at the date of disposal. Bellway is entitled to a further allocation from Middle Warren to rectify the imbalance.

Court Disposition

Declaration granted in favour of Bellway

Orders

  • Declaration that Beazer is obliged by clauses 3.1 and 3.2 of the shareholders agreement to exercise its voting rights in Leebell so that Bellway receives a disposal of land from the Middle Warren site sufficient to rectify the imbalance in the values of land disposed of to Bellway and Beazer from the Cramlington site.