RECLAIMING MOTION BY CRIMOND ESTATES LTD AGAINST MILE END DEVELOPMENTS LTD [2021] ScotCS CSIH_60 (29 October 2021)

RECLAIMING MOTION BY CRIMOND ESTATES LTD AGAINST MILE END DEVELOPMENTS LTD [2021] ScotCS CSIH_60 (29 October 2021)

Clause 3.12 applies to termination by the defender under clause 6.2.7, regardless of whether the termination was lawful or in breach of contract. Reasonable remuneration under clause 3.12 is to be based on the open market rate for similar project management services and does not require assessment of the quality of services provided. The conditions in clause 3.9 do not limit the entitlement to reasonable remuneration under clause 3.12 in the circumstances of this case.

Citation
[2021] ScotCS CSIH_60
Parties
Pursuer and Respondent: Crimond Estates Limited; Defender and Reclaimer: Mile End Developments Limited
Jurisdiction
Scotland
Judgment Date
29 October 2021
Procedural Posture
Reclaiming Motion (appeal) / Inner House, Court of Session, Post Proof Judgment
Outcome
Reclaiming motion refused
Legal Topics
Contract Interpretation, Termination of Contract, Remuneration for Services, Damages for Breach of Contract
Contract Law Commercial Law Contract Interpretation Termination of Contract Remuneration for Services Damages for Breach of Contract

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Parties

Crimond Estates Limited

Pursuer and Respondent

Mile End Developments Limited

Defender and Reclaimer

Procedural Posture

Reclaiming Motion (appeal) / Inner House, Court of Session, Post Proof Judgment

Legal Issues

  1. 1 Whether clause 3.12 of the contract applies where termination was in breach of contract
  2. 2 Whether reasonable remuneration under clause 3.12 requires assessment of quality of services
  3. 3 Whether payment under clause 3.12 is subject to the conditions in clause 3.9

Ratio Decidendi

Clause 3.12 applies to termination by the defender under clause 6.2.7, regardless of whether the termination was lawful or in breach of contract. Reasonable remuneration under clause 3.12 is to be based on the open market rate for similar project management services and does not require assessment of the quality of services provided. The conditions in clause 3.9 do not limit the entitlement to reasonable remuneration under clause 3.12 in the circumstances of this case.

Court Disposition

Reclaiming motion refused

Orders

  • Award of £211,831.63 to the pursuer for reasonable remuneration under clause 3.12 is upheld
  • All questions as to expenses reserved