The Minister for Treasury and Resources -v- Harcourt Development Ltd and others [2014] JCA 179 (25 September 2014)

The Minister for Treasury and Resources -v- Harcourt Development Ltd and others [2014] JCA 179 (25 September 2014)

Clause 3.4 of the Heads of Terms is, on its face, an unenforceable agreement to negotiate in good faith and with due diligence, which is too uncertain to constitute a legally enforceable obligation under Jersey law. The only contractual duty relied upon is this clause, and as such, the claim against the Minister for...

Source-derived case information.

Citation
[2014] JCA 179
Parties
Appellant: The Minister for Treasury and Resources; Respondent: Harcourt Developments Limited; Respondent: Esplanade Financial Centre Limited; Respondent: Les Jardins Residential Limited; Respondent: Les Jardins Leisure Limited; Respondent: Harcourt Developments (Jersey) Limited
Jurisdiction
Jersey
Judgment Date
25 September 2014
Procedural Posture
Civil Appeal / Appeal From Refusal to Strike Out Claim at First Instance
Outcome
Appeal allowed; claim against the Minister struck out
Legal Topics
Agreements to Agree, Good Faith Negotiation, Certainty in Contract, Strike Out Applications, Tort of Inducing Breach of Contract
Contract Law Tort Law Agreements to Agree Good Faith Negotiation Certainty in Contract Strike Out Applications Tort of Inducing Breach of Contract

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Parties

The Minister for Treasury and Resources

Appellant

Harcourt Developments Limited

Respondent

Esplanade Financial Centre Limited

Respondent

Les Jardins Residential Limited

Respondent

Les Jardins Leisure Limited

Respondent

Harcourt Developments (Jersey) Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Refusal to Strike Out Claim at First Instance

Legal Issues

  1. 1 Whether clause 3.4 of the Heads of Terms constitutes an enforceable contractual obligation or is an unenforceable agreement to negotiate
  2. 2 Whether the claim against the Minister for Treasury and Resources for inducing breach of contract should be struck out for disclosing no reasonable cause of action

Ratio Decidendi

Clause 3.4 of the Heads of Terms is, on its face, an unenforceable agreement to negotiate in good faith and with due diligence, which is too uncertain to constitute a legally enforceable obligation under Jersey law. The only contractual duty relied upon is this clause, and as such, the claim against the Minister for inducing breach of contract cannot succeed. The Bailiff erred in refusing to strike out the claim, as the pleaded case does not disclose a reasonable cause of action.

Court Disposition

Appeal allowed; claim against the Minister struck out

Orders

  • The claim against the Minister for Treasury and Resources is struck out as disclosing no reasonable cause of action.