Daventry District Council v Daventry & District Housing Ltd

Daventry District Council v Daventry & District Housing Ltd

The claim for rectification failed because the parties' common intention did not continue until execution of the Transfer Contract; the contract unambiguously provided for DDC to pay the pension deficit. The claim for unilateral mistake failed as DDH did not know DDC was still mistaken at execution. No duty of care arose between the parties in the negotiation context.

Parties
Claimant: Daventry District Council; Defendant: Daventry & District Housing Limited
Jurisdiction
England and Wales
Judgment Date
30 July 2010
Procedural Posture
Civil / Judgment
Outcome
Claim dismissed
Legal Topics
Rectification, Mistake, Duty of Care, Large Scale Voluntary Transfer, Pension Deficit
Contract Law Tort Law Rectification Mistake Duty of Care Large Scale Voluntary Transfer Pension Deficit

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Parties

Daventry District Council

Claimant

Daventry & District Housing Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Was there ever a common intention that DDH would pay £2.4 million to NCC in respect of the pension deficit?
  2. 2 Did that common intention continue until execution of the Transfer Contract?
  3. 3 Would rectification of clause 14.10.3 alone result in the Transfer Contract reflecting the true agreement between the parties?

Ratio Decidendi

The claim for rectification failed because the parties' common intention did not continue until execution of the Transfer Contract; the contract unambiguously provided for DDC to pay the pension deficit. The claim for unilateral mistake failed as DDH did not know DDC was still mistaken at execution. No duty of care arose between the parties in the negotiation context.

Court Disposition

Claim dismissed