Caterleisure Ltd v. Glasgow Prestwick International Airport Ltd [2005] ScotCS CSIH_53 (01 July 2005)

Caterleisure Ltd v. Glasgow Prestwick International Airport Ltd [2005] ScotCS CSIH_53 (01 July 2005)

The Licence Agreement was granted for a defined term of 12 years, not less than one year, and thus required subscribed writing under the Requirements of Writing (Scotland) Act 1995. The existence of a 6-month break clause did not reduce the term for statutory purposes. The Lord Ordinary erred in holding otherwise. However, the pursuers' averments regarding material adverse effect under section 1(4)(b) of the Act were sufficient to allow a proof before answer.

Citation
[2005] ScotCS CSIH_53
Parties
Pursuers and Respondents: Caterleisure Limited; Defenders and Reclaimers: Glasgow Prestwick International Airport Ltd
Jurisdiction
Scotland
Judgment Date
01 July 2005
Procedural Posture
Commercial Action (damages for Breach of Contract) / Appeal (reclaiming Motion) Against Lord Ordinary's Interlocutor
Outcome
Reclaiming motion allowed; Lord Ordinary's interlocutor of 25 November 2004 recalled in its entirety; case remitted for further procedure.
Legal Topics
Requirements of Writing (scotland) Act 1995, Contract Formation, Interests in Land, Break Clauses, Damages for Breach of Contract
Contract Law Property Law Commercial Law Requirements of Writing (scotland) Act 1995 Contract Formation Interests in Land Break Clauses Damages for Breach of Contract

Case Brief

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Parties

Caterleisure Limited

Pursuers and Respondents

Glasgow Prestwick International Airport Ltd

Defenders and Reclaimers

Procedural Posture

Commercial Action (damages for Breach of Contract) / Appeal (reclaiming Motion) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether the Licence Agreement was granted for more than one year and thus required subscribed writing under the Requirements of Writing (Scotland) Act 1995
  2. 2 Whether the pursuers' actings on the faith of the negotiated drafts and the defenders' withdrawal could override the statutory writing requirement under section 1(4) of the 1995 Act

Ratio Decidendi

The Licence Agreement was granted for a defined term of 12 years, not less than one year, and thus required subscribed writing under the Requirements of Writing (Scotland) Act 1995. The existence of a 6-month break clause did not reduce the term for statutory purposes. The Lord Ordinary erred in holding otherwise. However, the pursuers' averments regarding material adverse effect under section 1(4)(b) of the Act were sufficient to allow a proof before answer.

Court Disposition

Reclaiming motion allowed; Lord Ordinary's interlocutor of 25 November 2004 recalled in its entirety; case remitted for further procedure.

Orders

  • Recall of Lord Ordinary's interlocutor of 25 November 2004 in its entirety
  • Remit case to Lord Ordinary for further procedure as accords