National House-Building Council v Scott Hogarth Homes (aka Scotthogarth Homes) & Ors [2017] ScotCS CSOH_7 (17 January 2017)

National House-Building Council v Scott Hogarth Homes (aka Scotthogarth Homes) & Ors [2017] ScotCS CSOH_7 (17 January 2017)

The first defenders (partnership) remained the registered developer as there was no valid transfer of registration to SHL, no effective dissolution of the partnership was notified, and the defenders are personally barred from denying their status due to their conduct. Mr Hogarth had actual authority to act for the first defenders in applying for Buildmark cover. The first defenders are contractually bound to indemnify the pursuer for sums paid out under the Buildmark policies for Falconer Court.

Citation
[2017] ScotCS CSOH_7
Parties
Pursuer: National House-Building Council; First Defender: Scott Hogarth Homes (also known as Scotthogarth Homes); Second Defender: Robert Geoffrey Scott; Third Defender: Neil Hogarth
Jurisdiction
Scotland
Judgment Date
17 January 2017
Procedural Posture
Commercial Action (recoupment of Insurance Payments) / Judgment After Proof Before Answer
Outcome
For the pursuer. The first defenders are liable to indemnify the pursuer for sums paid under the Buildmark policies.
Legal Topics
Personal Bar (estoppel), Authority of Agents, Partnership Dissolution, Construction of Contractual Terms, Developer Liability Under Warranty Schemes
Contract Law Insurance Law Partnership Law Personal Bar (estoppel) Authority of Agents Partnership Dissolution Construction of Contractual Terms Developer Liability Under Warranty Schemes

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Parties

National House-Building Council

Pursuer

Scott Hogarth Homes (also known as Scotthogarth Homes)

First Defender

Robert Geoffrey Scott

Second Defender

Neil Hogarth

Third Defender

Procedural Posture

Commercial Action (recoupment of Insurance Payments) / Judgment After Proof Before Answer

Legal Issues

  1. 1 Whether the first defenders (partnership) or SHL (company) was the registered developer liable under the NHBC Buildmark policy for Falconer Court
  2. 2 Whether the first defenders' NHBC registration was transferred to SHL
  3. 3 Whether the partnership was dissolved in 2003

Ratio Decidendi

The first defenders (partnership) remained the registered developer as there was no valid transfer of registration to SHL, no effective dissolution of the partnership was notified, and the defenders are personally barred from denying their status due to their conduct. Mr Hogarth had actual authority to act for the first defenders in applying for Buildmark cover. The first defenders are contractually bound to indemnify the pursuer for sums paid out under the Buildmark policies for Falconer Court.

Court Disposition

For the pursuer. The first defenders are liable to indemnify the pursuer for sums paid under the Buildmark policies.

Orders

  • Decree for payment by the first defenders to the pursuer of the sums claimed (subject to quantification).
  • Defenders' pleas of personal bar repelled.