Smith v Braer Corporation & Ors [1999] ScotCS 126 (26 May 1999)

Smith v Braer Corporation & Ors [1999] ScotCS 126 (26 May 1999)

The pursuer's claim is for pure relational economic loss, which is not recoverable in Scots law as established in Landcatch Ltd v IOPC Fund. Additionally, the pursuer has irrevocably discharged his claim by signing a clear and unambiguous Receipt and Release, and has not sought reduction of that discharge.

Citation
[1999] ScotCS 126
Parties
Pursuer: Magnus George Smith; First Defender: The Braer Corporation; Second Defender: Assuranceforeningen Skuld (Gjensidig); Third Defender: The International Oil Pollution Compensation Fund
Jurisdiction
Scotland
Judgment Date
26 May 1999
Procedural Posture
Civil Action for Damages / Debate on Preliminary Pleas (procedure Roll)
Outcome
Action dismissed
Legal Topics
Economic Loss, Oil Pollution, Subrogation, Discharge of Claims, Competency of Pleadings
Tort Contract Maritime Law Economic Loss Oil Pollution Subrogation Discharge of Claims Competency of Pleadings

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Parties

Magnus George Smith

Pursuer

The Braer Corporation

First Defender

Assuranceforeningen Skuld (Gjensidig)

Second Defender

The International Oil Pollution Compensation Fund

Third Defender

Procedural Posture

Civil Action for Damages / Debate on Preliminary Pleas (procedure Roll)

Legal Issues

  1. 1 Whether the pursuer's claim for relational economic loss is relevant in law
  2. 2 Whether the pursuer's claim has been discharged by a Receipt and Release
  3. 3 Whether subrogation deprives the pursuer of title and interest to sue

Ratio Decidendi

The pursuer's claim is for pure relational economic loss, which is not recoverable in Scots law as established in Landcatch Ltd v IOPC Fund. Additionally, the pursuer has irrevocably discharged his claim by signing a clear and unambiguous Receipt and Release, and has not sought reduction of that discharge.

Court Disposition

Action dismissed

Orders

  • Sustain plea in law 1 for the first and second defenders and plea in law 2 for the third defenders
  • Sustain pleas relating to discharge to the extent of dismissing the action