Fishbourne Developments Ltd v Stephens [2020] EWCA Civ 1704 (16 December 2020)

Fishbourne Developments Ltd v Stephens [2020] EWCA Civ 1704 (16 December 2020)

The term 'Planning Permission' in the 2002 Option requires permission for development by new building involving a change of use from agricultural use, relating to the whole or substantially the whole of the property. Minor or inconsequential permissions, such as the Roof Permission, do not suffice to trigger the option to purchase the entire property. The judge's construction, considering the language, context, and commercial sense, is correct.

Citation
[2020] EWCA Civ 1704
Parties
Appellant: Fishbourne Developments Limited; Respondent: Stephens
Jurisdiction
England and Wales
Judgment Date
16 December 2020
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (chancery Division)
Outcome
Appeal dismissed
Legal Topics
Interpretation of Option Agreements, Planning Permission, Construction of Contracts, Land Development
Contract Law Property Law Interpretation of Option Agreements Planning Permission Construction of Contracts Land Development

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Parties

Fishbourne Developments Limited

Appellant

Stephens

Respondent

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (chancery Division)

Legal Issues

  1. 1 What is the proper construction of 'Planning Permission' in the 2002 Option agreement?
  2. 2 Does 'development of the Property' mean development of the whole or part of the Property?
  3. 3 Does planning permission for minor works trigger the option to purchase the entire property?

Ratio Decidendi

The term 'Planning Permission' in the 2002 Option requires permission for development by new building involving a change of use from agricultural use, relating to the whole or substantially the whole of the property. Minor or inconsequential permissions, such as the Roof Permission, do not suffice to trigger the option to purchase the entire property. The judge's construction, considering the language, context, and commercial sense, is correct.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the Roof Permission does not constitute 'Planning Permission' under the 2002 Option; the Notice served by Fishbourne is invalid.