Fairhurst Developments Ltd & Anor v Collins & Anor

Fairhurst Developments Ltd & Anor v Collins & Anor

The development agreement was entered into by Mr Fairhurst personally, not Fairhurst Developments Limited. Fairhurst was in breach for failing to complete the works within a reasonable time and for defective work. Mr Collins was also in breach for failing to take reasonable steps to market and sell the property and for renting it out to unsuitable tenants. Both parties are entitled to damages reflecting their respective breaches, with quantification of profit share and final damages to be determined after valuation evidence is provided. The claim by Fairhurst Developments Limited fails; Mr Fairhurst is entitled to judgment in his personal capacity.

Parties
Claimant: Fairhurst Developments Limited; Claimant/additional Defendant to Counterclaim: Mr Mark Fairhurst; Defendant: Mr Richard Vincent Collins
Jurisdiction
England and Wales
Judgment Date
05 February 2016
Procedural Posture
Civil (construction/joint Venture Dispute) / Judgment After Full Trial
Outcome
Judgment for Mr Mark Fairhurst (personally) and for Mr Collins on counterclaim in part; quantification of damages adjourned for valuation evidence; claim by Fairhurst Developments Limited dismissed.
Legal Topics
Joint Venture Agreements, Breach of Contract, Remedies (damages, Specific Performance), Trusts Arising From Joint Ventures, Misrepresentation, Construction Disputes, Valuation of Damages
Contract Law Equity/trusts Civil Procedure Joint Venture Agreements Breach of Contract Remedies (damages, Specific Performance) Trusts Arising From Joint Ventures Misrepresentation +2 more

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Parties

Fairhurst Developments Limited

Claimant

Mr Mark Fairhurst

Claimant/additional Defendant to Counterclaim

Mr Richard Vincent Collins

Defendant

Procedural Posture

Civil (construction/joint Venture Dispute) / Judgment After Full Trial

Legal Issues

  1. 1 Who was the correct contracting party to the development agreement?
  2. 2 What were the terms of the oral development agreement?
  3. 3 Was there breach of contract by either party?

Ratio Decidendi

The development agreement was entered into by Mr Fairhurst personally, not Fairhurst Developments Limited. Fairhurst was in breach for failing to complete the works within a reasonable time and for defective work. Mr Collins was also in breach for failing to take reasonable steps to market and sell the property and for renting it out to unsuitable tenants. Both parties are entitled to damages reflecting their respective breaches, with quantification of profit share and final damages to be determined after valuation evidence is provided. The claim by Fairhurst Developments Limited fails; Mr Fairhurst is entitled to judgment in his personal capacity.

Court Disposition

Judgment for Mr Mark Fairhurst (personally) and for Mr Collins on counterclaim in part; quantification of damages adjourned for valuation evidence; claim by Fairhurst Developments Limited dismissed.

Orders

  • Fairhurst Developments Limited's claim dismissed.
  • Mr Mark Fairhurst entitled to damages for works and profit share, subject to deduction for completion and defect costs.