Redbourn Group Ltd v Fairgate Developments Ltd [2018] EWHC 658 (TCC) (13 April 2018)

Redbourn Group Ltd v Fairgate Developments Ltd [2018] EWHC 658 (TCC) (13 April 2018)

RGL is not entitled to damages for wrongful termination beyond the admitted unpaid fee because, on the facts, the project as envisaged in the contract was not a realistic prospect and FDL would have been entitled to lawfully terminate the contract before any further fees became due. The contract did not oblige FDL to proceed with the project or approve a planning application, and damages for loss of a chance are not available where the underlying opportunity was not realistic or contractually guaranteed.

Citation
[2018] EWHC 658 (TCC)
Parties
Claimant: Redbourn Group Limited; Defendant: Fairgate Developments Limited
Jurisdiction
England and Wales
Judgment Date
13 April 2018
Procedural Posture
Commercial Contract Dispute / Quantum Trial Following Default Judgment on Liability
Outcome
Claim for further damages dismissed; judgment for admitted unpaid fee only.
Legal Topics
Wrongful Termination, Damages Assessment, Loss of a Chance, Development Management Contracts
Contract Law Commercial Law Wrongful Termination Damages Assessment Loss of a Chance Development Management Contracts

Case Brief

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Parties

Redbourn Group Limited

Claimant

Fairgate Developments Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Quantum Trial Following Default Judgment on Liability

Legal Issues

  1. 1 Whether the claimant is entitled to damages for wrongful termination of a development management contract beyond admitted unpaid fees
  2. 2 Whether the claimant is entitled to damages for loss of a chance to earn further fees under the contract

Ratio Decidendi

RGL is not entitled to damages for wrongful termination beyond the admitted unpaid fee because, on the facts, the project as envisaged in the contract was not a realistic prospect and FDL would have been entitled to lawfully terminate the contract before any further fees became due. The contract did not oblige FDL to proceed with the project or approve a planning application, and damages for loss of a chance are not available where the underlying opportunity was not realistic or contractually guaranteed.

Court Disposition

Claim for further damages dismissed; judgment for admitted unpaid fee only.

Orders

  • Judgment for the claimant in the sum of £21,615 (plus VAT if applicable)
  • All other claims dismissed