AVONDALE COACHES LTD AGAINST STRATHCLYDE PARTNERSHIP FOR TRANSPORT [2015] ScotSC 63 (06 October 2015)

AVONDALE COACHES LTD AGAINST STRATHCLYDE PARTNERSHIP FOR TRANSPORT [2015] ScotSC 63 (06 October 2015)

The sheriff was entitled, on the evidence, to conclude that the defenders exercised their discretion under the contract in an arbitrary, capricious, and unreasonable manner, breaching the implied term of good faith. The sheriff's assessment of witness credibility and findings of fact were justified and not open to appellate interference. The sheriff correctly applied the law regarding implied terms and damages. The appeal failed on all grounds.

Citation
[2015] ScotSC 63
Parties
Pursuer: Avondale Coaches Ltd; Defender: Strathclyde Partnership for Transport
Jurisdiction
Scotland
Judgment Date
06 October 2015
Procedural Posture
Commercial Contract Damages Action / Appeal From Sheriff's Decision
Outcome
Appeal refused; sheriff's decision affirmed.
Legal Topics
Termination of Contract, Implied Terms, Exercise of Contractual Discretion, Damages for Breach of Contract, Assessment of Witness Credibility, Appellate Review of Fact Finding
Contract Law Commercial Law Termination of Contract Implied Terms Exercise of Contractual Discretion Damages for Breach of Contract Assessment of Witness Credibility Appellate Review of Fact Finding

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2
Sign in to unlock

Parties

Avondale Coaches Ltd

Pursuer

Strathclyde Partnership for Transport

Defender

Procedural Posture

Commercial Contract Damages Action / Appeal From Sheriff's Decision

Legal Issues

  1. 1 Whether the defenders exercised their contractual discretion arbitrarily, capriciously, or unreasonably in terminating the contract
  2. 2 Whether the sheriff erred in her assessment of the evidence and witness credibility
  3. 3 Whether the sheriff misapplied the law regarding implied terms and the right to terminate

Ratio Decidendi

The sheriff was entitled, on the evidence, to conclude that the defenders exercised their discretion under the contract in an arbitrary, capricious, and unreasonable manner, breaching the implied term of good faith. The sheriff's assessment of witness credibility and findings of fact were justified and not open to appellate interference. The sheriff correctly applied the law regarding implied terms and damages. The appeal failed on all grounds.

Court Disposition

Appeal refused; sheriff's decision affirmed.

Orders

  • Defenders found liable to pursuers in expenses of the appeal.
  • Account of expenses to be lodged and remitted to auditor of court to tax and report.