Barton v Gwyn-Jones & Ors

Barton v Gwyn-Jones & Ors

The contract did not expressly exclude remuneration for a sale at less than £6.5 million; therefore, Mr Barton is entitled to reasonable compensation for the introduction, either by unjust enrichment or quantum meruit, assessed at 7.25% of the purchase price.

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 / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Introduction Fee Agreements, Quantum Meruit, Implied Terms, Allocation of Risk, Valuation of Services
Contract Law Unjust Enrichment Insolvency Introduction Fee Agreements Quantum Meruit Implied Terms Allocation of Risk Valuation of Services

Case Brief

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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 / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a contract for a specified introduction fee excludes remuneration if property is sold for less than the stipulated price
  2. 2 Whether a claim in unjust enrichment is barred by the principle in Macdonald Dickens & Macklin v Costello
  3. 3 Proper valuation of benefit conferred by introduction

Ratio Decidendi

The contract did not expressly exclude remuneration for a sale at less than £6.5 million; therefore, Mr Barton is entitled to reasonable compensation for the introduction, either by unjust enrichment or quantum meruit, assessed at 7.25% of the purchase price.

Court Disposition

Appeal allowed

Orders

  • Mr Barton is entitled to £435,000 as reasonable remuneration for the introduction of the purchaser.
  • No entitlement to £1.2 million as per original contract.