Technotrade Ltd v Larkstore Ltd [2006] EWCA Civ 1079 (27 July 2006)

Parties

Procedural Posture

Appeal (civil) / Appeal From Preliminary Issue Determination in Part 20 Proceedings

Legal Issues

1. 1 Whether an assignee of a cause of action for breach of contract can recover substantial damages for loss suffered after the transfer of property but before the assignment, in excess of what the assignor could have recovered.
2. 2 Whether the assignment of the cause of action was valid and not champertous.
3. 3 Whether Technotrade owed a duty of care in tort to Larkstore and/or third parties for physical damage and/or economic loss.

Ratio Decidendi

Larkstore, as assignee of Starglade's cause of action for breach of contract, is entitled to recover substantial damages from Technotrade for loss suffered as a result of the landslip, even though the loss occurred after the transfer of the site and before the assignment, provided the loss would have been recoverable by Starglade had it retained the property. The assignment was valid and not champertous. The principle that an assignee cannot recover more than the assignor does not preclude recovery in these circumstances, as the assignment passes the right to sue and all remedies for the breach. The measure of damages is not limited to the assignor's loss at the time of assignment. The...

Court Disposition

Appeal dismissed on the assignment point; applications for permission to appeal on duty of care points refused.

Orders

• Larkstore entitled to pursue claim for substantial damages against Technotrade as assignee of Starglade's contractual cause of action.
• Applications for permission to appeal on duty of care points by both parties refused with no order as to costs.