SRB CIVIL ENGINEERING UK LTD AGAINST RAMBOLL UK LTD [2022] ScotCS CSOH_93 (20 December 2022)

SRB CIVIL ENGINEERING UK LTD AGAINST RAMBOLL UK LTD [2022] ScotCS CSOH_93 (20 December 2022)

The Novation Agreement effected a delegation, substituting the pursuer for SRBCE and transferring obligations and liabilities. The pursuer is liable as if it had always been party to the contract, and losses sustained prior to novation are recoverable by the pursuer as assignee. The defender's argument that obligations were extinguished and losses avoided is rejected; obligations and liabilities are transferred, not vanished.

Citation
[2022] ScotCS CSOH_93
Parties
Pursuer: SRB Civil Engineering UK Limited; Defender: Ramboll UK Limited
Jurisdiction
Scotland
Judgment Date
20 December 2022
Procedural Posture
Commercial Action / Debate on Defender's Motion for Dismissal
Outcome
Defender's motion to dismiss refused; proof before answer allowed.
Legal Topics
Novation, Assignation, Breach of Contract, Delegation, Title to Sue
Contract Law Commercial Law Novation Assignation Breach of Contract Delegation Title to Sue

Case Brief

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Parties

SRB Civil Engineering UK Limited

Pursuer

Ramboll UK Limited

Defender

Procedural Posture

Commercial Action / Debate on Defender's Motion for Dismissal

Legal Issues

  1. 1 Whether novation extinguishes or transfers contractual obligations
  2. 2 Whether loss suffered by original party is recoverable after novation
  3. 3 Title to sue under assignation

Ratio Decidendi

The Novation Agreement effected a delegation, substituting the pursuer for SRBCE and transferring obligations and liabilities. The pursuer is liable as if it had always been party to the contract, and losses sustained prior to novation are recoverable by the pursuer as assignee. The defender's argument that obligations were extinguished and losses avoided is rejected; obligations and liabilities are transferred, not vanished.

Court Disposition

Defender's motion to dismiss refused; proof before answer allowed.

Orders

  • Defender's first plea in law (no title to sue) repelled for want of insistence.
  • Proof before answer allowed.