Manorgate Ltd v First Scottish Property Services Ltd [2013] ScotCS CSOH_108 (04 July 2013)

Manorgate Ltd v First Scottish Property Services Ltd [2013] ScotCS CSOH_108 (04 July 2013)

FSPSL's negligent failure to disclose the archaeological designation in the property enquiry certificate caused Manorgate's losses, as Manorgate relied on the certificate and would not have purchased the site had it known the true position. Manorgate was not contributorily negligent nor did it fail to mitigate its loss. Damages are recoverable for diminution in capital value, site expenditure, and lost trading profits, but not for development profit, which was too remote.

Citation
[2013] ScotCS CSOH_108
Parties
Pursuer: Manorgate Limited; Defender: First Scottish Property Services Limited
Jurisdiction
Scotland
Judgment Date
04 July 2013
Procedural Posture
Civil (damages for Negligence) / Judgment After Proof (trial)
Outcome
Judgment for the pursuer (Manorgate Limited) against the defender (FSPSL) for damages, with quantum to be finalised at a further hearing.
Legal Topics
Negligent Misstatement, Property Searches, Damages, Causation, Contributory Negligence, Mitigation of Loss, Remoteness of Damage
Tort Property Law Professional Negligence Negligent Misstatement Property Searches Damages Causation Contributory Negligence +2 more

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Parties

Manorgate Limited

Pursuer

First Scottish Property Services Limited

Defender

Procedural Posture

Civil (damages for Negligence) / Judgment After Proof (trial)

Legal Issues

  1. 1 Whether the defender's negligent property search caused the pursuer's loss
  2. 2 Whether the pursuer relied on the property enquiry certificate
  3. 3 Whether the pursuer was contributorily negligent or failed to mitigate loss

Ratio Decidendi

FSPSL's negligent failure to disclose the archaeological designation in the property enquiry certificate caused Manorgate's losses, as Manorgate relied on the certificate and would not have purchased the site had it known the true position. Manorgate was not contributorily negligent nor did it fail to mitigate its loss. Damages are recoverable for diminution in capital value, site expenditure, and lost trading profits, but not for development profit, which was too remote.

Court Disposition

Judgment for the pursuer (Manorgate Limited) against the defender (FSPSL) for damages, with quantum to be finalised at a further hearing.

Orders

  • Damages awarded for diminution in capital value (£251,453.21), site expenditure (£148,901.48), and lost trading profits (£227,875.00 past, £51,511.00 future).
  • No award for development profit.