Wipfel Ltd v. Auchlochan Developments Ltd [2006] ScotCS CSOH_183 (01 December 2006)

Wipfel Ltd v. Auchlochan Developments Ltd [2006] ScotCS CSOH_183 (01 December 2006)

The missives expressly provided that interest as liquidated damages would accrue until the contractual date of entry in any resale of the subjects, and since the specified event (resale of the whole subjects) had not occurred, the pursuers' claim for interest was premature and irrelevant. The right to claim interest under the liquidated damages provision was not triggered until the event agreed upon by the parties (resale) materialised.

Citation
[2006] ScotCS CSOH_183
Parties
Pursuer: Wipfel Limited; Defender: Auchlochan Developments Limited
Jurisdiction
Scotland
Judgment Date
01 December 2006
Procedural Posture
Commercial Action (contractual Dispute) / Debate on Relevancy (plea to Relevancy)
Outcome
Action dismissed
Legal Topics
Liquidated Damages, Interest on Unpaid Purchase Price, Rescission of Contract, Missives for Sale of Heritable Property
Contract Law Commercial Law Liquidated Damages Interest on Unpaid Purchase Price Rescission of Contract Missives for Sale of Heritable Property

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Parties

Wipfel Limited

Pursuer

Auchlochan Developments Limited

Defender

Procedural Posture

Commercial Action (contractual Dispute) / Debate on Relevancy (plea to Relevancy)

Legal Issues

  1. 1 Whether the pursuers are entitled to claim interest as liquidated damages under the missives after rescission and before resale of the subjects
  2. 2 Whether the contractual clause allows for recovery of interest in the absence of actual loss or before the specified event (resale) occurs

Ratio Decidendi

The missives expressly provided that interest as liquidated damages would accrue until the contractual date of entry in any resale of the subjects, and since the specified event (resale of the whole subjects) had not occurred, the pursuers' claim for interest was premature and irrelevant. The right to claim interest under the liquidated damages provision was not triggered until the event agreed upon by the parties (resale) materialised.

Court Disposition

Action dismissed

Orders

  • Sustained the defenders' plea to the relevancy
  • Dismissed the pursuers' action