LEANDER CB CONSULTANTS LTD T/A LEANDER ADVISORS AGAINST BOGSIDE INVESTMENTS LTD AND ANOTHER [2024] ScotCS CSOH_9 (02 February 2024)

LEANDER CB CONSULTANTS LTD T/A LEANDER ADVISORS AGAINST BOGSIDE INVESTMENTS LTD AND ANOTHER [2024] ScotCS CSOH_9 (02 February 2024)

The court found that Mr Shute made false representations to Mr McLeish regarding the existence of substantial funds and imminent deals, and that these misrepresentations were at least negligent and possibly fraudulent. The representations induced McLeish/Bogside to enter into the Letter of Engagement and advance funds. The Letter of Engagement is reducible for misrepresentation. The claim for the second tranche of £150,000 fails. Bogside/McLeish are entitled to repayment of the first tranche and associated expenses. No finding is made in the Bogside action against Mr Shute due to his death and pending entry of his executors.

Citation
[2024] ScotCS CSOH_9
Parties
Pursuer: Leander CB Consultants Limited t/a Leander Advisors; First Defender: Bogside Investments Limited; Second Defender: Alan Carson McLeish
Jurisdiction
Scotland
Judgment Date
02 February 2024
Procedural Posture
Commercial Action (court of Session, Scotland) / Judgment After Proof (trial)
Outcome
For the Leander action: Pursuer's claim for payment of the second tranche (£150,000) refused; Letter of Engagement reduced; defenders entitled to repayment of first tranche (£150,000) and £25,000 expenses. For the Bogside action: No interlocutor issued pending entry of Mr Shute's executors.
Legal Topics
Fraudulent Misrepresentation, Negligent Misrepresentation, Innocent Misrepresentation, Reduction of Contract, Damages, Reliance, Remedies for Misrepresentation
Contract Law Fraud Tort/delict Commercial Law Fraudulent Misrepresentation Negligent Misrepresentation Innocent Misrepresentation Reduction of Contract +3 more

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Parties

Leander CB Consultants Limited t/a Leander Advisors

Pursuer

Bogside Investments Limited

First Defender

Alan Carson McLeish

Second Defender

Procedural Posture

Commercial Action (court of Session, Scotland) / Judgment After Proof (trial)

Legal Issues

  1. 1 Whether Mr Shute made misrepresentations to Mr McLeish and Bogside Investments Ltd
  2. 2 Whether such misrepresentations were fraudulent, negligent, or innocent
  3. 3 Whether the misrepresentations induced Mr McLeish/Bogside to enter into the Letter of Engagement and advance funds

Ratio Decidendi

The court found that Mr Shute made false representations to Mr McLeish regarding the existence of substantial funds and imminent deals, and that these misrepresentations were at least negligent and possibly fraudulent. The representations induced McLeish/Bogside to enter into the Letter of Engagement and advance funds. The Letter of Engagement is reducible for misrepresentation. The claim for the second tranche of £150,000 fails. Bogside/McLeish are entitled to repayment of the first tranche and associated expenses. No finding is made in the Bogside action against Mr Shute due to his death and pending entry of his executors.

Court Disposition

For the Leander action: Pursuer's claim for payment of the second tranche (£150,000) refused; Letter of Engagement reduced; defenders entitled to repayment of first tranche (£150,000) and £25,000 expenses. For the Bogside action: No interlocutor issued pending entry of Mr Shute's executors.

Orders

  • Refusal of Leander's claim for payment of £150,000 (second tranche)
  • Reduction of the Letter of Engagement