Knockacummer Wind Farm Ltd -v- Cremins & Anor [2016] IEHC 95 (19 February 2016)

Knockacummer Wind Farm Ltd -v- Cremins & Anor [2016] IEHC 95 (19 February 2016)

The Option Agreement must be construed as only permitting exercise of the purchase option in 2042, absent acceleration by the plaintiff. The absence of an express start date was a drafting error, and the agreement is corrected by construction to reflect the parties' intention as evidenced by the 2012 Settlement...

Source-derived case information.

Citation
[2016] IEHC 95
Parties
Plaintiff: Knockacummer Wind Farm Ltd.; Defendant: Denis Cremins; Defendant: Sheila Cremins
Jurisdiction
Ireland
Judgment Date
19 February 2016
Procedural Posture
Commercial/plenary / Judgment After Trial
Outcome
Declaration granted in favour of plaintiff; Option Agreement construed to permit exercise of purchase option only in 2042.
Legal Topics
Interpretation of Contracts, Rectification, Option Agreements, Settlement Agreements
Contract Law Property Law Equity Interpretation of Contracts Rectification Option Agreements Settlement Agreements

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Parties

Knockacummer Wind Farm Ltd.

Plaintiff

Denis Cremins

Defendant

Sheila Cremins

Defendant

Procedural Posture

Commercial/plenary / Judgment After Trial

Legal Issues

  1. 1 Whether the defendants could exercise the purchase option prior to 2042 under the Option Agreement
  2. 2 Whether the Option Agreement should be rectified to reflect the parties' true intention as expressed in the 2012 Settlement Agreement
  3. 3 Whether the Lease Option Notice was validly served

Ratio Decidendi

The Option Agreement must be construed as only permitting exercise of the purchase option in 2042, absent acceleration by the plaintiff. The absence of an express start date was a drafting error, and the agreement is corrected by construction to reflect the parties' intention as evidenced by the 2012 Settlement Agreement and the operation of clause 6. Rectification is not required as proper construction achieves the intended result.

Court Disposition

Declaration granted in favour of plaintiff; Option Agreement construed to permit exercise of purchase option only in 2042.

Orders

  • Option Agreement construed to permit exercise of purchase option only in 2042 unless accelerated by plaintiff.
  • Defendants not entitled to exercise purchase option prior to 2042.