Fernheath Development Ltd v Malone & Anor [2010] NICh 19 (14 October 2010)

The contract expressly entitled the plaintiff to forfeit the deposit and recover the deficiency in price on resale as liquidated damages, and to interest, and the wording of the contract did not limit the plaintiff to the deposit only. The damages calculation was agreed at £89,192.60.

Citation: [2010] NICh 19
Parties: Plaintiff: Fernheath Development Limited; First Defendant: David Malone; Second Defendant: Kelly Ann Flynn Malone
Jurisdiction: Northern Ireland
Judgment Date: 14 October 2010
Procedural Posture: Civil / Judgment After Trial
Outcome: judgment for the plaintiff
Legal Topics: Liquidated Damages, Forfeiture of Deposit, Specific Performance, Breach of Contract, Measure of Damages

Contract Law Property Law Liquidated Damages Forfeiture of Deposit Specific Performance Breach of Contract Measure of Damages

Case Brief

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Parties

Fernheath Development Limited

Plaintiff

David Malone

First Defendant

Kelly Ann Flynn Malone

Second Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

1 Whether the plaintiff is entitled to both forfeiture of the deposit and damages for loss on resale under the contract.
2 Whether the contract's liquidated damages clause limits the plaintiff's remedies to the deposit only.
3 Whether interest is recoverable in addition to damages for loss on resale.

Ratio Decidendi

Court Disposition

judgment for the plaintiff

Orders

First defendant to pay £89,192.60 to the plaintiff.
First defendant to pay costs to be taxed in default of agreement on the standard basis.