Allied Vehicles Ltd v Glasgow City Council [2013] ScotCS CSOH_192 (12 December 2013)

Allied Vehicles Ltd v Glasgow City Council [2013] ScotCS CSOH_192 (12 December 2013)

Clause 9.4 gives the defenders the right to terminate the lease for a particular vehicle where that vehicle is unavailable for more than 25% of working time in any rolling 3 month period in the first twelve months of the contract period. The defenders' construction is the natural and commercially sensible reading of the clause.

Citation
[2013] ScotCS CSOH_192
Parties
Pursuer: Allied Vehicles Limited; Defender: Glasgow City Council
Jurisdiction
Scotland
Judgment Date
12 December 2013
Procedural Posture
Commercial Contract Dispute / Procedure Roll Discussion on Relevancy of Averments
Outcome
Defenders' averments on clause 9.4 held relevant; pursuers' averments on the same point held irrelevant.
Legal Topics
Interpretation of Contract Clauses, Right to Terminate Lease, Vehicle Hire Agreements
Contract Law Commercial Law Interpretation of Contract Clauses Right to Terminate Lease Vehicle Hire Agreements

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Parties

Allied Vehicles Limited

Pursuer

Glasgow City Council

Defender

Procedural Posture

Commercial Contract Dispute / Procedure Roll Discussion on Relevancy of Averments

Legal Issues

  1. 1 Proper construction of clause 9.4 of the Master Vehicle Hire Agreement regarding the right to terminate the lease for individual vehicles

Ratio Decidendi

Clause 9.4 gives the defenders the right to terminate the lease for a particular vehicle where that vehicle is unavailable for more than 25% of working time in any rolling 3 month period in the first twelve months of the contract period. The defenders' construction is the natural and commercially sensible reading of the clause.

Court Disposition

Defenders' averments on clause 9.4 held relevant; pursuers' averments on the same point held irrelevant.

Orders

  • Case to be put out by order for parties to agree on necessary deletions or amendments to averments in light of the decision.