Kirkton Investments Ltd v VHM LLP [2011] ScotCS CSOH_200 (08 December 2011)

Kirkton Investments Ltd v VHM LLP [2011] ScotCS CSOH_200 (08 December 2011)

The defenders, as solicitors, owed a duty to take reasonable care to secure an enforceable right for the pursuers to install a ventilation duct. Their admitted breach of duty foreseeably caused delay in marketing and selling the development, resulting in additional borrowing costs and loss of sales revenue due to the property market downturn. These losses were within the scope of the solicitors' duty, and the pursuers are entitled to damages assessed on a loss of chance basis.

Citation
[2011] ScotCS CSOH_200
Parties
Pursuer: Kirkton Investments Ltd; Defender: VHM LLP
Jurisdiction
Scotland
Judgment Date
08 December 2011
Procedural Posture
Professional Negligence Claim (damages) / Proof Before Answer; Final Judgment
Outcome
Pursuers succeed in part; defenders found liable for damages as assessed.
Legal Topics
Solicitors' Duties, Scope of Duty, Causation, Damages, Loss of Chance, Property Development, Planning Conditions
Professional Negligence Contract Law Delict (tort) Solicitors' Duties Scope of Duty Causation Damages Loss of Chance +2 more

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Parties

Kirkton Investments Ltd

Pursuer

VHM LLP

Defender

Procedural Posture

Professional Negligence Claim (damages) / Proof Before Answer; Final Judgment

Legal Issues

  1. 1 Whether defenders (solicitors) breached duty of care to pursuers in failing to secure enforceable right to install ventilation duct
  2. 2 Whether losses claimed (including delay, additional borrowing costs, and loss of sales revenue) fall within the scope of the defenders' duty
  3. 3 Assessment of causation and quantum of damages

Ratio Decidendi

The defenders, as solicitors, owed a duty to take reasonable care to secure an enforceable right for the pursuers to install a ventilation duct. Their admitted breach of duty foreseeably caused delay in marketing and selling the development, resulting in additional borrowing costs and loss of sales revenue due to the property market downturn. These losses were within the scope of the solicitors' duty, and the pursuers are entitled to damages assessed on a loss of chance basis.

Court Disposition

Pursuers succeed in part; defenders found liable for damages as assessed.

Orders

  • Defenders to pay pursuers £324,000 (settlement to IME)
  • Defenders to pay pursuers £55,812.09 (extrication costs)