Wilmington Trust Company & Anor v Rolls-Royce Plc & Anor [2011] ScotCS CSOH_151 (09 September 2011)

Wilmington Trust Company & Anor v Rolls-Royce Plc & Anor [2011] ScotCS CSOH_151 (09 September 2011)

The pursuers' attack on the relevancy of the defenders' claim to a lien fails. The lease provisions do not amount to an outright prohibition on the creation of liens; permitted liens may arise in the ordinary course of business. IAE's averments, if established, may justify the conclusion that it had sufficient possession and mutuality of obligation to assert a lien. The issues require proof before answer. Averments about foreign substantive law, voidness for uncertainty, and A1P1 are excluded as irrelevant.

Citation
[2011] ScotCS CSOH_151
Parties
Pursuer: Wilmington Trust Company; Pursuer: Orix Aviation Systems Limited; Defender: Rolls-Royce Plc; Defender: IAE Aero Engines AG
Jurisdiction
Scotland
Judgment Date
09 September 2011
Procedural Posture
Commercial Action (delivery of Goods, Declarator, Damages) / Interlocutory Judgment on Relevancy of Defences, Plea to Relevancy, Debate
Outcome
Proof before answer allowed; certain averments excluded from probation.
Legal Topics
Lien, Possessory Rights, Aircraft Leasing, Contractual Interpretation, Unjust Enrichment, Foreign Law, Human Rights (a1 P1)
Commercial Law Contract Law Property Law Conflict of Laws Lien Possessory Rights Aircraft Leasing Contractual Interpretation +3 more

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Parties

Wilmington Trust Company

Pursuer

Orix Aviation Systems Limited

Pursuer

Rolls-Royce Plc

Defender

IAE Aero Engines AG

Defender

Procedural Posture

Commercial Action (delivery of Goods, Declarator, Damages) / Interlocutory Judgment on Relevancy of Defences, Plea to Relevancy, Debate

Legal Issues

  1. 1 Whether IAE has relevantly averred entitlement to a lien over the engines under Scots law
  2. 2 Whether contractual provisions in the leases prohibit creation of a lien
  3. 3 Whether IAE had sufficient possession to assert a lien

Ratio Decidendi

The pursuers' attack on the relevancy of the defenders' claim to a lien fails. The lease provisions do not amount to an outright prohibition on the creation of liens; permitted liens may arise in the ordinary course of business. IAE's averments, if established, may justify the conclusion that it had sufficient possession and mutuality of obligation to assert a lien. The issues require proof before answer. Averments about foreign substantive law, voidness for uncertainty, and A1P1 are excluded as irrelevant.

Court Disposition

Proof before answer allowed; certain averments excluded from probation.

Orders

  • Averments about foreign law, voidness for uncertainty, and A1P1 excluded from probation as specified in the schedule.
  • Case to be put out by order to determine further procedure.