Thevarajah v Riordan & Ors

Thevarajah v Riordan & Ors

The Deputy Judge erred in disregarding the common ground in the pleadings and correspondence, and in failing to give effect to the agreement as pleaded and understood by the parties. The agreement was sufficiently clear that Thevarajah was to acquire The Jewel unencumbered, with the purchase price abated by the indebtedness, and The Castle and its debt extricated from Prestige. The relief granted should have reflected this, including payment to Thevarajah of the sums overpaid and compensation for liabilities imposed contrary to the agreement. The default judgment route was not available, and the court was required to determine entitlement to relief on the evidence. The costs of the Part 8...

Parties
Appellant: Thavatheva Thevarajah; Respondent: John Riordan; Respondent: Eugene Burke; Respondent: Prestige Property Developer UK Limited; Respondent: Barrington Burke
Jurisdiction
England and Wales
Judgment Date
04 February 2015
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Specific Performance, Damages, Striking Out Defence, Default Judgment, Costs
Contract Law Civil Procedure Specific Performance Damages Striking Out Defence Default Judgment Costs

Case Brief

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Parties

Thavatheva Thevarajah

Appellant

John Riordan

Respondent

Eugene Burke

Respondent

Prestige Property Developer UK Limited

Respondent

Barrington Burke

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the Deputy Judge erred in ordering implementation of an arrangement lacking agreement of an important element
  2. 2 Whether the Deputy Judge was correct to disregard common ground in pleadings and correspondence
  3. 3 Whether the relief granted was supported by the pleadings and evidence

Ratio Decidendi

The Deputy Judge erred in disregarding the common ground in the pleadings and correspondence, and in failing to give effect to the agreement as pleaded and understood by the parties. The agreement was sufficiently clear that Thevarajah was to acquire The Jewel unencumbered, with the purchase price abated by the indebtedness, and The Castle and its debt extricated from Prestige. The relief granted should have reflected this, including payment to Thevarajah of the sums overpaid and compensation for liabilities imposed contrary to the agreement. The default judgment route was not available, and the court was required to determine entitlement to relief on the evidence. The costs of the Part 8...

Court Disposition

Appeal allowed

Orders

  • Set aside paragraphs 1, 2, 4 and 5 of the Deputy Judge's order dated 21 March 2014
  • Substitute order requiring transfer of shares in Prestige to Thevarajah and payment of £2,204,976.40 plus interest at 8% from 4 February 2015, subject to adjustment if the Bank of Cyprus restructures the borrowing