Barton v Gwyn-Jones & Ors [2019] EWCA Civ 1999 (21 November 2019)

Barton v Gwyn-Jones & Ors [2019] EWCA Civ 1999 (21 November 2019)

Where a contract for an introduction fee is silent as to remuneration if the property is sold for less than the stipulated price, and does not expressly exclude payment in such circumstances, the agent is entitled to reasonable remuneration either by way of unjust enrichment or quantum meruit. The existence of the contract does not bar such a claim unless it expressly allocates the risk. The appropriate measure of remuneration is the objective market value of the services, not the originally agreed fee if that fee was influenced by extraneous factors.

Citation
[2019] EWCA Civ 1999
Parties
Appellant: Philip Barton; First Respondent: Timothy Gwyn-Jones; Second Respondent: Julie Swan; Third Respondent: Mark Phillips; Fourth Respondent: Foxpace Limited
Jurisdiction
England and Wales
Judgment Date
21 November 2019
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Introduction Fee Agreements, Quantum Meruit, Implied Terms, Restitution, Valuation of Services, Allocation of Risk, Liquidation Proceedings
Contract Law Unjust Enrichment Insolvency Introduction Fee Agreements Quantum Meruit Implied Terms Restitution Valuation of Services +2 more

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Parties

Philip Barton

Appellant

Timothy Gwyn-Jones

First Respondent

Julie Swan

Second Respondent

Mark Phillips

Third Respondent

Foxpace Limited

Fourth Respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether a contract for a specified introduction fee excludes remuneration if the property is sold for less than the stipulated price
  2. 2 Whether a claim in unjust enrichment is barred by the existence of a contract that is silent on the relevant scenario
  3. 3 How to value the benefit conferred by the introduction where the contract is silent

Ratio Decidendi

Where a contract for an introduction fee is silent as to remuneration if the property is sold for less than the stipulated price, and does not expressly exclude payment in such circumstances, the agent is entitled to reasonable remuneration either by way of unjust enrichment or quantum meruit. The existence of the contract does not bar such a claim unless it expressly allocates the risk. The appropriate measure of remuneration is the objective market value of the services, not the originally agreed fee if that fee was influenced by extraneous factors.

Court Disposition

Appeal allowed

Orders

  • The appeal is allowed.
  • Mr Barton is entitled to reasonable remuneration for the introduction of the purchaser.