Cameron-Head v. Cameron [1919] ScotLR 550 (10 July 1919)

Cameron-Head v. Cameron [1919] ScotLR 550 (10 July 1919)

The clause for 10s. per day is a stipulation for liquidated damages, not a penalty, as it is a reasonable pre-estimate of loss arising from delay in removing timber, and is not shown to be exorbitant or disproportionate. The sum accrues daily and is immediately exigible; the pursuer need not wait for contract completion nor aver actual damages. The action is competent for the accrued period.

Citation
[1919] ScotLR 550
Parties
Pursuer/respondent: Mrs Christian Cameron-Head of Inverailort; Defenders/reclaimers: John Cameron & Company, timber merchants, Govan, and John Cameron, sole partner
Jurisdiction
Scotland
Judgment Date
10 July 1919
Procedural Posture
Civil (contract) / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; judgment for pursuer/respondent affirmed.
Legal Topics
Liquidated Damages, Penalty Clauses, Construction of Contracts, Accumulation of Actions, Prematurity of Action
Contract Law Liquidated Damages Penalty Clauses Construction of Contracts Accumulation of Actions Prematurity of Action

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Parties

Mrs Christian Cameron-Head of Inverailort

Pursuer/respondent

John Cameron & Company, timber merchants, Govan, and John Cameron, sole partner

Defenders/reclaimers

Procedural Posture

Civil (contract) / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether the contractual clause for 10s. per day is a penalty or liquidated damages
  2. 2 Whether the action is premature or incompetent before contract completion
  3. 3 Whether the pursuer must aver actual damages to claim under the clause

Ratio Decidendi

The clause for 10s. per day is a stipulation for liquidated damages, not a penalty, as it is a reasonable pre-estimate of loss arising from delay in removing timber, and is not shown to be exorbitant or disproportionate. The sum accrues daily and is immediately exigible; the pursuer need not wait for contract completion nor aver actual damages. The action is competent for the accrued period.

Court Disposition

Appeal dismissed; judgment for pursuer/respondent affirmed.

Orders

  • Court adhered to Lord Ordinary's interlocutor.
  • Defenders' pleas-in-law repelled.