McKeand v Dorian [2000] ScotCS 108 (20 April 2000)

McKeand v Dorian [2000] ScotCS 108 (20 April 2000)

The Deed of Covenant was enforceable as a deed under English law, with the obligation to pay £71,000 arising upon Mr Ruffler procuring the release of H.D.'s debt to Lordsvale. The waiver letter, signed with actual authority, constituted a binding release of the debt, providing reciprocal consideration. The pursuer, as statutory assignee, was entitled to enforce the obligation for payment and interest.

Citation
[2000] ScotCS 108
Parties
Pursuer: Joseph McKeand; Defender: Harold David Dorian
Jurisdiction
Scotland
Judgment Date
20 April 2000
Procedural Posture
Civil / Outer House, Court of Session, Opinion
Outcome
Judgment for the pursuer
Legal Topics
Assignment of Debt, Construction of Contracts, Waiver and Estoppel, Authority of Agents, Consideration, Enforceability of Deeds
Contract Law Private International Law Assignment of Debt Construction of Contracts Waiver and Estoppel Authority of Agents Consideration Enforceability of Deeds

Case Brief

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Parties

Joseph McKeand

Pursuer

Harold David Dorian

Defender

Procedural Posture

Civil / Outer House, Court of Session, Opinion

Legal Issues

  1. 1 Whether the Deed of Covenant is enforceable against the defender under English law
  2. 2 Whether the waiver letter released H.D. from its debt to Lordsvale
  3. 3 Whether Mr Ruffler had authority to sign the waiver letter on behalf of Lordsvale

Ratio Decidendi

The Deed of Covenant was enforceable as a deed under English law, with the obligation to pay £71,000 arising upon Mr Ruffler procuring the release of H.D.'s debt to Lordsvale. The waiver letter, signed with actual authority, constituted a binding release of the debt, providing reciprocal consideration. The pursuer, as statutory assignee, was entitled to enforce the obligation for payment and interest.

Court Disposition

Judgment for the pursuer

Orders

  • Decree for payment of £71,000 with interest at 15% per annum compounded monthly from 27 August 1993 until payment
  • Pursuer's pleas-in-law sustained