HILL OF RUBISLAW (Q Seven) Ltd v. RUBISLAW QUARRY ABERDEEN LTD & Ors [2013] ScotCS CSOH_131 (06 August 2013)

HILL OF RUBISLAW (Q Seven) Ltd v. RUBISLAW QUARRY ABERDEEN LTD & Ors [2013] ScotCS CSOH_131 (06 August 2013)

Clause 2.1 restricts the total net lettable floor area of office space that may be constructed on the northern quarry subjects, not merely that which is let or offered for let; the restriction is a valid real burden as it confers a praedial benefit on the neighbouring office blocks, protecting their rental value and lettability; the restraint is not unreasonable or contrary to public policy; the pursuers, as prospective purchasers under missives, have sufficient interest to seek declarator, but their substantive claims fail.

Citation
[2013] ScotCS CSOH_131
Parties
Pursuer: Hill of Rubislaw (Q Seven) Limited; Defender: Rubislaw House Limited; Defender: Marathon House Limited; Defender: Seafield House Limited
Jurisdiction
Scotland
Judgment Date
06 August 2013
Procedural Posture
Declaratory Action (construction of Contract and Real Burden) / Outer House, Court of Session, Opinion
Outcome
Declarators refused; defenders assoilzied; plea of no title to sue repelled.
Legal Topics
Interpretation of Restrictive Covenants, Real Burdens Under Title Conditions (scotland) Act 2003, Restraint of Trade, Title and Interest to Sue, Declaratory Actions
Property Law Contract Law Real Burdens Interpretation of Restrictive Covenants Real Burdens Under Title Conditions (scotland) Act 2003 Restraint of Trade Title and Interest to Sue Declaratory Actions

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Parties

Hill of Rubislaw (Q Seven) Limited

Pursuer

Rubislaw House Limited

Defender

Marathon House Limited

Defender

Seafield House Limited

Defender

Procedural Posture

Declaratory Action (construction of Contract and Real Burden) / Outer House, Court of Session, Opinion

Legal Issues

  1. 1 Proper construction of clause 2.1 of the minute of agreement regarding office space restriction
  2. 2 Whether clause 2.1 constitutes a real burden under the Title Conditions (Scotland) Act 2003
  3. 3 Whether the restriction is an unreasonable restraint of trade

Ratio Decidendi

Clause 2.1 restricts the total net lettable floor area of office space that may be constructed on the northern quarry subjects, not merely that which is let or offered for let; the restriction is a valid real burden as it confers a praedial benefit on the neighbouring office blocks, protecting their rental value and lettability; the restraint is not unreasonable or contrary to public policy; the pursuers, as prospective purchasers under missives, have sufficient interest to seek declarator, but their substantive claims fail.

Court Disposition

Declarators refused; defenders assoilzied; plea of no title to sue repelled.

Orders

  • Refuse both declaratory conclusions sought by the pursuers.
  • Assoilzie (absolve) the defenders from the conclusions of the summons.