Paul & Ors v Ogilvy [2000] ScotCS 19 (25 January 2000)

Paul & Ors v Ogilvy [2000] ScotCS 19 (25 January 2000)

The court held that the pursuers were entitled to substantial damages for the loss of the chance of obtaining planning permission for housing development on 8.9 acres of Kessington Farm, as this chance was real and non-negligible. The value of the lost chance should be assessed as 30% of the relevant development value (£750,000), discounted for early payment, as the prospect of planning permission by Spring 2006 was assessed at 30%. An arithmetical approach to quantification was appropriate in the circumstances, as there was no alternative market or mechanism for valuation, and the chance was well above the threshold of being merely speculative.

Citation
[2000] ScotCS 19
Parties
Pursuers: John Paul and Others; Defender: Alexander Lindsay Ogilvy
Jurisdiction
Scotland
Judgment Date
25 January 2000
Procedural Posture
Civil Action for Professional Negligence / Reparation / Judgment After Proof (trial) on Quantum of Damages
Outcome
Damages awarded to pursuers for loss of tenancy and loss of chance of development value, calculated as 30% of £750,000 (discounted for early payment), plus agreed sums for housing loss and West Millichen holding.
Legal Topics
Loss of Chance, Measure of Damages, Agricultural Tenancy, Planning Permission, Solicitor's Duty of Care
Professional Negligence Agricultural Law Landlord and Tenant Damages Loss of Chance Measure of Damages Agricultural Tenancy Planning Permission +1 more

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Parties

John Paul and Others

Pursuers

Alexander Lindsay Ogilvy

Defender

Procedural Posture

Civil Action for Professional Negligence / Reparation / Judgment After Proof (trial) on Quantum of Damages

Legal Issues

  1. 1 What is the appropriate measure of damages for the pursuers' loss of the secure agricultural tenancy of Kessington Farm due to the defender's admitted negligence?
  2. 2 How should the court value the lost chance of obtaining planning permission for housing development on part of Kessington Farm?
  3. 3 Is an arithmetical approach to quantifying the value of a lost chance appropriate in Scottish law?

Ratio Decidendi

The court held that the pursuers were entitled to substantial damages for the loss of the chance of obtaining planning permission for housing development on 8.9 acres of Kessington Farm, as this chance was real and non-negligible. The value of the lost chance should be assessed as 30% of the relevant development value (£750,000), discounted for early payment, as the prospect of planning permission by Spring 2006 was assessed at 30%. An arithmetical approach to quantification was appropriate in the circumstances, as there was no alternative market or mechanism for valuation, and the chance was well above the threshold of being merely speculative.

Court Disposition

Damages awarded to pursuers for loss of tenancy and loss of chance of development value, calculated as 30% of £750,000 (discounted for early payment), plus agreed sums for housing loss and West Millichen holding.

Orders

  • Pursuers awarded damages for loss of development potential: 30% of £750,000, discounted for early payment.
  • Pursuers awarded £15,000 for housing loss (agreed).