Bryant Homtes (Scotland) Ltd v Secretary Of State For Scotland [2001] ScotCS 130 (30 May 2001)

Bryant Homtes (Scotland) Ltd v Secretary Of State For Scotland [2001] ScotCS 130 (30 May 2001)

The Court held that 'exceptional costs' refers to unforeseen costs not contemplated by the original contract, arising from matters disclosed in the relevant reports, and does not require comparison to the overall development costs. The relevant period for such reports is from the offer date to four months after the conclusion of the missives. The burden of proof for the proviso (satisfaction and reasonableness) rests with the sellers, as these matters are peculiarly within their knowledge.

Citation
[2001] ScotCS 130
Parties
Claimants/respondents: Bryant Homes (Scotland) Limited and Others; Respondents/appellants: Secretary of State for Scotland
Jurisdiction
Scotland
Judgment Date
30 May 2001
Procedural Posture
Stated Case Under the Administration of Justice (scotland) Act 1972 / Appeal From Arbitration to Court of Session for Opinion on Questions of Law
Outcome
Questions 2, 3, 7, and 8 answered in the affirmative; case remitted to the arbiter to proceed as accords.
Legal Topics
Interpretation of Contractual Terms, Burden of Proof in Contractual Disputes, Exceptional Costs in Property Development Contracts
Contract Law Arbitration Interpretation of Contractual Terms Burden of Proof in Contractual Disputes Exceptional Costs in Property Development Contracts

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Parties

Bryant Homes (Scotland) Limited and Others

Claimants/respondents

Secretary of State for Scotland

Respondents/appellants

Procedural Posture

Stated Case Under the Administration of Justice (scotland) Act 1972 / Appeal From Arbitration to Court of Session for Opinion on Questions of Law

Legal Issues

  1. 1 Proper construction of 'exceptional costs' in the contract
  2. 2 Relevant period for documents/reports under clause 3(1)(a)
  3. 3 Burden of proof regarding reasonableness of seller's discretion under the contract

Ratio Decidendi

The Court held that 'exceptional costs' refers to unforeseen costs not contemplated by the original contract, arising from matters disclosed in the relevant reports, and does not require comparison to the overall development costs. The relevant period for such reports is from the offer date to four months after the conclusion of the missives. The burden of proof for the proviso (satisfaction and reasonableness) rests with the sellers, as these matters are peculiarly within their knowledge.

Court Disposition

Questions 2, 3, 7, and 8 answered in the affirmative; case remitted to the arbiter to proceed as accords.

Orders

  • Case remitted to the arbiter for further proceedings in accordance with the Court's opinion.