Milne & Ors v Messrs Moores Rowland & Ors [1999] ScotCS 305 (23 December 1999)

Milne & Ors v Messrs Moores Rowland & Ors [1999] ScotCS 305 (23 December 1999)

The pursuers' pleadings are deficient in failing to address the role and materiality of the offshore investment company in the loss calculation, but this is not fatal to their case at this stage. The trustees have title to sue for losses affecting the trust estate, including future tax liabilities, notwithstanding technicalities of tax legislation. The pursuers' averments under section 11(3) of the Prescription and Limitation (Scotland) Act 1973 are sufficient to proceed to proof, though both sides' pleadings could be improved. The issue of double counting in loss calculation is a matter for further inquiry.

Citation
[1999] ScotCS 305
Parties
Pursuer: Mrs. Kathleen Beveridge Milne and Others; First Defender: Messrs Moores Rowland; Second Defender: Messrs Wright Brown and Strong and Others
Jurisdiction
Scotland
Judgment Date
23 December 1999
Procedural Posture
Civil Professional Negligence / Procedure Roll Debate (pleadings Challenge, Not Final Disposition)
Outcome
No final disposal; case to proceed to proof before answer. Pleadings not dismissed at this stage.
Legal Topics
Duty of Care, Limitation and Prescription, Measure of Damages, Title to Sue, Capital Gains Tax, Inheritance Tax
Professional Negligence Trusts and Estates Taxation Duty of Care Limitation and Prescription Measure of Damages Title to Sue Capital Gains Tax +1 more

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Parties

Mrs. Kathleen Beveridge Milne and Others

Pursuer

Messrs Moores Rowland

First Defender

Messrs Wright Brown and Strong and Others

Second Defender

Procedural Posture

Civil Professional Negligence / Procedure Roll Debate (pleadings Challenge, Not Final Disposition)

Legal Issues

  1. 1 Whether the pursuers' pleadings are relevant and sufficiently specified regarding loss allegedly caused by professional negligence in tax planning.
  2. 2 Whether the trustees (third and fourth pursuers) have title to sue for losses relating to future tax liabilities.
  3. 3 Whether the claims of the first and second pursuers are prescribed under the Prescription and Limitation (Scotland) Act 1973, or whether section 11(3) applies.

Ratio Decidendi

The pursuers' pleadings are deficient in failing to address the role and materiality of the offshore investment company in the loss calculation, but this is not fatal to their case at this stage. The trustees have title to sue for losses affecting the trust estate, including future tax liabilities, notwithstanding technicalities of tax legislation. The pursuers' averments under section 11(3) of the Prescription and Limitation (Scotland) Act 1973 are sufficient to proceed to proof, though both sides' pleadings could be improved. The issue of double counting in loss calculation is a matter for further inquiry.

Court Disposition

No final disposal; case to proceed to proof before answer. Pleadings not dismissed at this stage.

Orders

  • Case put out By Order for further procedure; parties to consider positions in light of opinion.