Kenwright v Stuart Milne Group Ltd [2015] ScotCS CSOH_86 (30 June 2015)

Kenwright v Stuart Milne Group Ltd [2015] ScotCS CSOH_86 (30 June 2015)

The defender is not bound to indemnify the pursuer for the value of the CEF land because the indemnity letter allowed the defender to procure the conveyance directly, which was done. The pursuer has already received the value of the CEF land through the phase 1 purchase price, which reflected the benefit of planning permission. Only the council's conveyancing costs are indemnifiable.

Citation
[2015] ScotCS CSOH_86
Parties
Pursuer: David Douglas Ernest Kenwright; Defender: Stuart Milne Group Limited
Jurisdiction
Scotland
Judgment Date
30 June 2015
Procedural Posture
Civil / Opinion of the Court (outer House, Court of Session)
Outcome
Defender not liable to indemnify pursuer for the value of the CEF land; only liable for council's conveyancing costs.
Legal Topics
Indemnity, Option Agreements, Planning Permission, Section 75 Agreements, Developer Contributions
Contract Law Property Law Indemnity Option Agreements Planning Permission Section 75 Agreements Developer Contributions

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Parties

David Douglas Ernest Kenwright

Pursuer

Stuart Milne Group Limited

Defender

Procedural Posture

Civil / Opinion of the Court (outer House, Court of Session)

Legal Issues

  1. 1 Whether the defender is bound to indemnify the pursuer in respect of the loss claimed for the conveyance of the Community/Education Facility Land (CEF land) to the council.
  2. 2 Whether the pursuer suffered a compensable loss under the indemnity provisions.

Ratio Decidendi

The defender is not bound to indemnify the pursuer for the value of the CEF land because the indemnity letter allowed the defender to procure the conveyance directly, which was done. The pursuer has already received the value of the CEF land through the phase 1 purchase price, which reflected the benefit of planning permission. Only the council's conveyancing costs are indemnifiable.

Court Disposition

Defender not liable to indemnify pursuer for the value of the CEF land; only liable for council's conveyancing costs.

Orders

  • Fix a by order hearing to discuss matters in light of the opinion.
  • Reserve all questions of expenses.