Lane v O'Brien Homes

Lane v O'Brien Homes

The appropriate measure of damages for breach of the collateral contract was the sum that would reasonably have been agreed in a hypothetical negotiation at the time the developer sought release from the prohibition, reflecting the value of the benefit to the claimant and the uplift in value from the planning permission for a fourth house. The judge's award of £150,000 was not manifestly excessive or based on a wrong principle.

Parties
Claimant/respondent: Lane; Defendant/appellant: O’Brien Homes
Jurisdiction
England and Wales
Judgment Date
05 February 2004
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Collateral Contract, Damages Assessment, Restrictive Covenants, Breach of Contract
Contract Law Property Law Collateral Contract Damages Assessment Restrictive Covenants Breach of Contract

Case Brief

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Parties

Lane

Claimant/respondent

O’Brien Homes

Defendant/appellant

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the award of damages for breach of a collateral contract was made on an appropriate basis
  2. 2 What is the correct measure of damages for breach of a collateral contract restricting development

Ratio Decidendi

The appropriate measure of damages for breach of the collateral contract was the sum that would reasonably have been agreed in a hypothetical negotiation at the time the developer sought release from the prohibition, reflecting the value of the benefit to the claimant and the uplift in value from the planning permission for a fourth house. The judge's award of £150,000 was not manifestly excessive or based on a wrong principle.

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed.
  • The award of damages of £150,000 to the claimant stands.