LONGHILL WIND FARM LLP AS THE ASSIGNEE OF ENERGIEKONTOR UK LTD AGAINST MUIRHALL ENERGY LTD AND OTHERS [2022] ScotCS CSOH_85 (25 November 2022)

LONGHILL WIND FARM LLP AS THE ASSIGNEE OF ENERGIEKONTOR UK LTD AGAINST MUIRHALL ENERGY LTD AND OTHERS [2022] ScotCS CSOH_85 (25 November 2022)

The proviso in condition 3.3 of the missives constituted a contractual warranty that no sums would be paid or be due to be paid to a Muirhall company through the operation of the MSC as a result of the grant of the New Radar Use Consents and the use of the New Radar. The warranty covered indirect payments, including the capex recovery fee paid by the pursuer to NATS and passed to the sixth defender. The benefit of condition 3 was assignable, and the pursuer as assignee was entitled to enforce the warranty. The sixth defender breached the warranty by receiving the capex recovery fee, entitling the pursuer to damages.

Citation
[2022] ScotCS CSOH_85
Parties
Pursuer: Longhill Wind Farm LLP as the assignee of Energiekontor UK Ltd; First Defender: Muirhall Energy Limited; Second Defender: Muirhall Energy Management Limited; Third Defender: Crossdykes WF Limited; Fourth Defender: Hopsrig Wind Farm Limited; Fifth Defender: Loganhead WF Limited; Sixth Defender: MEL WWS Limited
Jurisdiction
Scotland
Judgment Date
25 November 2022
Procedural Posture
Commercial Action / Judgment After Proof Before Answer
Outcome
Judgment for pursuer
Legal Topics
Contractual Interpretation, Assignation of Contractual Rights, Breach of Warranty, Wind Farm Development, Radar Mitigation Agreements
Contract Law Commercial Law Contractual Interpretation Assignation of Contractual Rights Breach of Warranty Wind Farm Development Radar Mitigation Agreements

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Parties

Longhill Wind Farm LLP as the assignee of Energiekontor UK Ltd

Pursuer

Muirhall Energy Limited

First Defender

Muirhall Energy Management Limited

Second Defender

Crossdykes WF Limited

Third Defender

Hopsrig Wind Farm Limited

Fourth Defender

Loganhead WF Limited

Fifth Defender

MEL WWS Limited

Sixth Defender

Procedural Posture

Commercial Action / Judgment After Proof Before Answer

Legal Issues

  1. 1 Interpretation of contractual proviso in missives
  2. 2 Whether the benefit of condition 3 was assignable
  3. 3 Whether receipt and retention of capex recovery fee breached warranty

Ratio Decidendi

The proviso in condition 3.3 of the missives constituted a contractual warranty that no sums would be paid or be due to be paid to a Muirhall company through the operation of the MSC as a result of the grant of the New Radar Use Consents and the use of the New Radar. The warranty covered indirect payments, including the capex recovery fee paid by the pursuer to NATS and passed to the sixth defender. The benefit of condition 3 was assignable, and the pursuer as assignee was entitled to enforce the warranty. The sixth defender breached the warranty by receiving the capex recovery fee, entitling the pursuer to damages.

Court Disposition

Judgment for pursuer

Orders

  • Declarator that the benefit of condition 3 was assigned to the pursuer
  • Order for payment of damages of £1.6 million plus interest by the sixth defender