Towns v. Insurance Direct (Underwriting) Ltd [2005] ScotSC 85 (01 December 2005)

Towns v. Insurance Direct (Underwriting) Ltd [2005] ScotSC 85 (01 December 2005)

The pursuer's averments of fraud were insufficiently specific and did not support an inference that the author of the letter knew it was false or acted recklessly. Even if all averments were proved, the case of fraud must necessarily fail. The sheriff erred in allowing proof of fraud, and the relevant averments were excluded from probation.

Citation
[2005] ScotSC 85
Parties
Pursuer and Respondent: David S Towns; Defenders and Appellants: Insurance Direct (Underwriting) Limited
Jurisdiction
Scotland
Judgment Date
01 December 2005
Procedural Posture
Civil Appeal / Appeal Against Interlocutor on Relevancy and Specification of Fraud Pleadings
Outcome
Appeal allowed; sheriff's interlocutor recalled; averments of fraud and loss of stock excluded from probation; proof allowed on remaining averments; expenses of appeal awarded to defenders; cause remitted to sheriff for further procedure and determination of expenses of debate.
Legal Topics
Fraudulent Misrepresentation, Negligence, Specification of Pleadings, Probation of Averments, Expenses
Insurance Law Civil Procedure Fraudulent Misrepresentation Negligence Specification of Pleadings Probation of Averments Expenses

Case Brief

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Parties

David S Towns

Pursuer and Respondent

Insurance Direct (Underwriting) Limited

Defenders and Appellants

Procedural Posture

Civil Appeal / Appeal Against Interlocutor on Relevancy and Specification of Fraud Pleadings

Legal Issues

  1. 1 Whether the pursuer's averments of fraud against the defenders were sufficiently relevant and specific to be admitted to probation
  2. 2 Whether the sheriff erred in allowing proof of fraud based on the pleadings

Ratio Decidendi

The pursuer's averments of fraud were insufficiently specific and did not support an inference that the author of the letter knew it was false or acted recklessly. Even if all averments were proved, the case of fraud must necessarily fail. The sheriff erred in allowing proof of fraud, and the relevant averments were excluded from probation.

Court Disposition

Appeal allowed; sheriff's interlocutor recalled; averments of fraud and loss of stock excluded from probation; proof allowed on remaining averments; expenses of appeal awarded to defenders; cause remitted to sheriff for further procedure and determination of expenses of debate.

Orders

  • Appeal allowed and sheriff's interlocutor of 7 July 2005 recalled
  • Defenders' first plea-in-law repelled