Jackson v. Clkydesdale Bank Plc & Ors [2002] ScotCS 308 (03 December 2002)

Jackson v. Clkydesdale Bank Plc & Ors [2002] ScotCS 308 (03 December 2002)

The quinquennial prescription period began to run on 10 May 1996, the date of execution of the unconditional sale agreement at an alleged undervalue, as that was when the company suffered loss; the possibility of reversal by the receivers did not postpone the accrual of the cause of action.

Citation
[2002] ScotCS 308
Parties
Pursuer: Douglas Brown Jackson; First Defender: Clydesdale Bank Plc; Second Defender: Andersens
Jurisdiction
Scotland
Judgment Date
03 December 2002
Procedural Posture
Civil (commercial) / Debate on Prescription (limitation) Plea
Outcome
Action dismissed as prescribed; defenders' plea to prescription upheld; absolvitor granted.
Legal Topics
Receivership, Breach of Duty, Prescription (limitation of Actions), Sale of Assets at Undervalue
Commercial Law Insolvency Law Banking Law Receivership Breach of Duty Prescription (limitation of Actions) Sale of Assets at Undervalue

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Parties

Douglas Brown Jackson

Pursuer

Clydesdale Bank Plc

First Defender

Andersens

Second Defender

Procedural Posture

Civil (commercial) / Debate on Prescription (limitation) Plea

Legal Issues

  1. 1 When does the quinquennial prescription period begin to run for a claim against receivers for sale of assets at undervalue?
  2. 2 Does the possibility of reversing a transaction postpone the accrual of loss for prescription purposes?

Ratio Decidendi

The quinquennial prescription period began to run on 10 May 1996, the date of execution of the unconditional sale agreement at an alleged undervalue, as that was when the company suffered loss; the possibility of reversal by the receivers did not postpone the accrual of the cause of action.

Court Disposition

Action dismissed as prescribed; defenders' plea to prescription upheld; absolvitor granted.

Orders

  • Defenders' plea to prescription upheld.
  • Action dismissed as prescribed.