Mackays Stores Ltd v. Topward Ltd [2006] ScotCS CSOH_99 (30 June 2006)

Mackays Stores Ltd v. Topward Ltd [2006] ScotCS CSOH_99 (30 June 2006)

Applying the ordinary rules of contractual construction, the parties' prorogation clause—covering 'any dispute or difference of whatsoever nature arising out of the order, the contract or the delivery of the goods'—was intended to confer jurisdiction on the Scottish Courts for disputes such as the present one, which concerns entitlement to contractual discounts and alleged overpayment. The defenders' focus on the remedy rather than the nature of the dispute is misplaced; the dispute arises out of the contract.

Citation
[2006] ScotCS CSOH_99
Parties
Pursuer: Mackays Stores Limited; Defender: Topward Limited
Jurisdiction
Scotland
Judgment Date
30 June 2006
Procedural Posture
Commercial Action / Preliminary Plea on Jurisdiction
Outcome
Defenders' preliminary plea on jurisdiction rejected
Legal Topics
Jurisdiction Clauses, Interpretation of Contract Terms, Restitution, Unjust Enrichment
Contract Law Civil Procedure Jurisdiction Clauses Interpretation of Contract Terms Restitution Unjust Enrichment

Case Brief

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Parties

Mackays Stores Limited

Pursuer

Topward Limited

Defender

Procedural Posture

Commercial Action / Preliminary Plea on Jurisdiction

Legal Issues

  1. 1 Whether the Scottish Court has jurisdiction under the prorogation clause for a claim of overpayment based on discounts allegedly due under contract
  2. 2 Whether the claim for repayment is contractual or restitutionary and whether it falls within the scope of the jurisdiction clause

Ratio Decidendi

Applying the ordinary rules of contractual construction, the parties' prorogation clause—covering 'any dispute or difference of whatsoever nature arising out of the order, the contract or the delivery of the goods'—was intended to confer jurisdiction on the Scottish Courts for disputes such as the present one, which concerns entitlement to contractual discounts and alleged overpayment. The defenders' focus on the remedy rather than the nature of the dispute is misplaced; the dispute arises out of the contract.

Court Disposition

Defenders' preliminary plea on jurisdiction rejected

Orders

  • Case to be put By Order for discussion of further procedure