McLaren Murdoch and Hamilton Ltd v. The Abercromby Motor Group Ltd [2002] ScotCS 299 (22 November 2002)

McLaren Murdoch and Hamilton Ltd v. The Abercromby Motor Group Ltd [2002] ScotCS 299 (22 November 2002)

The pursuers are entitled to a fee of 8% of the final account in the building contract, plus the Audi and CDM uplifts, as the contract is properly construed on an objective basis and supported by the evidence. The defenders are entitled to damages for the cost of replacing the entire heating system due to the pursuers' admitted negligence, as this is the appropriate measure of loss and not manifestly disproportionate. The defenders' claim is not defeated by the transfer of property within the corporate group.

Citation
[2002] ScotCS 299
Parties
Pursuer: McLaren Murdoch & Hamilton Limited; Defender: The Abercromby Motor Group Limited
Jurisdiction
Scotland
Judgment Date
22 November 2002
Procedural Posture
Commercial Action (outer House, Court of Session) / Judgment After Proof (trial)
Outcome
Pursuers' claim for fees (including uplifts) upheld; defenders' counterclaim for damages for negligent design of heating system upheld.
Legal Topics
Architects' Fees, Contract Interpretation, Damages for Breach of Contract, Professional Negligence, Measure of Damages, Corporate Group Liability
Contract Law Professional Negligence Construction Law Architects' Fees Contract Interpretation Damages for Breach of Contract Measure of Damages Corporate Group Liability

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Parties

McLaren Murdoch & Hamilton Limited

Pursuer

The Abercromby Motor Group Limited

Defender

Procedural Posture

Commercial Action (outer House, Court of Session) / Judgment After Proof (trial)

Legal Issues

  1. 1 Whether the pursuers' fee should be based on the final account or a budget figure
  2. 2 Entitlement to Audi and CDM uplifts
  3. 3 Whether the defenders established loss from negligent design of the heating system

Ratio Decidendi

The pursuers are entitled to a fee of 8% of the final account in the building contract, plus the Audi and CDM uplifts, as the contract is properly construed on an objective basis and supported by the evidence. The defenders are entitled to damages for the cost of replacing the entire heating system due to the pursuers' admitted negligence, as this is the appropriate measure of loss and not manifestly disproportionate. The defenders' claim is not defeated by the transfer of property within the corporate group.

Court Disposition

Pursuers' claim for fees (including uplifts) upheld; defenders' counterclaim for damages for negligent design of heating system upheld.

Orders

  • Pursuers awarded £29,375.57 (including VAT) for unpaid fees, Audi uplift, and CDM uplift.
  • Defenders awarded damages for cost of replacing the heating system (quantified by invoices and evidence).