AGRO INVEST OVERSEAS LTD AGAINST STEWART MILNE GROUP LTD AND AGRO INVEST OVERSEAS LTD AGAINST MORGAN ASSOCIATES [2019] ScotCS CSIH_59 (20 December 2019)

AGRO INVEST OVERSEAS LTD AGAINST STEWART MILNE GROUP LTD AND AGRO INVEST OVERSEAS LTD AGAINST MORGAN ASSOCIATES [2019] ScotCS CSIH_59 (20 December 2019)

The court held that Agro Invest Overseas Ltd had proved the existence of an oral agreement with CFW making it liable for defective works, and that raising the proceedings constituted a relevant acknowledgement under section 10(1)(a) of the 1973 Act, thereby interrupting prescription. The obligation had not prescribed.

Citation
[2019] ScotCS CSIH_59
Parties
Pursuer and Respondent: Agro Invest Overseas Ltd; Defender and First Reclaimer: Stewart Milne Group Ltd; Defender and Second Reclaimer: Morgan Associates
Jurisdiction
Scotland
Judgment Date
20 December 2019
Procedural Posture
Commercial Action (construction Dispute) / Appeal (reclaiming Motion) From Preliminary Proof Interlocutor
Outcome
Reclaiming motions refused; interlocutor of the Lord Ordinary adhered to.
Legal Topics
Breach of Contract, Prescription and Limitation, Relevant Acknowledgement, Agency Liability, Oral Agreements, Defective Design and Workmanship
Contract Law Prescription Law Construction Law Breach of Contract Prescription and Limitation Relevant Acknowledgement Agency Liability Oral Agreements +1 more

Case Brief

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Parties

Agro Invest Overseas Ltd

Pursuer and Respondent

Stewart Milne Group Ltd

Defender and First Reclaimer

Morgan Associates

Defender and Second Reclaimer

Procedural Posture

Commercial Action (construction Dispute) / Appeal (reclaiming Motion) From Preliminary Proof Interlocutor

Legal Issues

  1. 1 Whether Agro Invest Overseas Ltd had a subsisting liability to CFW for defective works
  2. 2 Whether Agro's obligation to CFW had prescribed
  3. 3 Whether raising proceedings constituted a relevant acknowledgement under the Prescription and Limitation (Scotland) Act 1973

Ratio Decidendi

The court held that Agro Invest Overseas Ltd had proved the existence of an oral agreement with CFW making it liable for defective works, and that raising the proceedings constituted a relevant acknowledgement under section 10(1)(a) of the 1973 Act, thereby interrupting prescription. The obligation had not prescribed.

Court Disposition

Reclaiming motions refused; interlocutor of the Lord Ordinary adhered to.

Orders

  • The pleas-in-law of the defending parties on prescription, title and interest to sue, and waiver are repelled.
  • Agro's obligation to CFW is found to subsist and has not prescribed.