Scottish Power Generation Ltd v. British Energy Generation (UK) Limited & Anor [A5684_01.html] ScotCS 1 [2002] ScotCS 119 (25th April, 2002)

Scottish Power Generation Ltd v. British Energy Generation (UK) Limited & Anor [A5684_01.html] ScotCS 1 [2002] ScotCS 119 (25th April, 2002)

The Lord Ordinary erred in granting the interim order because he failed to properly analyse the legal basis of the parties' positions, did not identify a prima facie case of breach or obligation, and made an order that significantly innovated on the parties' contractual rights without sufficient justification. The balance of convenience did not warrant departing from the status quo, and the disputed sums were not sufficiently identified to justify consignation.

Citation
[2002] ScotCS 119
Parties
Pursuer and Respondent: Scottish Power Generation Limited; First Defender and Reclaimer: British Energy Generation (UK) Limited; Second Defender: SSE Energy Supply Limited
Jurisdiction
Scotland
Procedural Posture
Reclaiming Motion (appeal) / Appeal Against Interim Order Under Section 47(2) of the Court of Session Act 1988
Outcome
Reclaiming motion allowed; Lord Ordinary's interlocutor of 4 January 2002 recalled.
Legal Topics
Interim Orders, Consignation, Frustration of Contract, Commercial Contracts, Court Discretion, Balance of Convenience
Contract Law Civil Procedure Interim Orders Consignation Frustration of Contract Commercial Contracts Court Discretion Balance of Convenience

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Parties

Scottish Power Generation Limited

Pursuer and Respondent

British Energy Generation (UK) Limited

First Defender and Reclaimer

SSE Energy Supply Limited

Second Defender

Procedural Posture

Reclaiming Motion (appeal) / Appeal Against Interim Order Under Section 47(2) of the Court of Session Act 1988

Legal Issues

  1. 1 Whether the Lord Ordinary erred in granting an interim order under section 47(2) of the Court of Session Act 1988 authorising the withholding and consignation of disputed payments pending resolution of a contractual dispute over electricity pricing after the abolition of the pool price mechanism.

Ratio Decidendi

The Lord Ordinary erred in granting the interim order because he failed to properly analyse the legal basis of the parties' positions, did not identify a prima facie case of breach or obligation, and made an order that significantly innovated on the parties' contractual rights without sufficient justification. The balance of convenience did not warrant departing from the status quo, and the disputed sums were not sufficiently identified to justify consignation.

Court Disposition

Reclaiming motion allowed; Lord Ordinary's interlocutor of 4 January 2002 recalled.

Orders

  • Recall of the Lord Ordinary's interlocutor of 4 January 2002.