PROSPECT HEALTHCARE (HAIRMYRES) LIMITED AGAINST KEIR BUILD LIMITED AND CARILLION CONSTRUCTION LIMITED [2017] ScotCS CSOH_112 (29 August 2017)

PROSPECT HEALTHCARE (HAIRMYRES) LIMITED AGAINST KEIR BUILD LIMITED AND CARILLION CONSTRUCTION LIMITED [2017] ScotCS CSOH_112 (29 August 2017)

The court held that the general rule in Scotland is that a party is only liable for the expenses of those against whom it has directed a case, unless there is unreasonable behaviour or a right of relief. The pursuer had not acted unreasonably and there was no legal basis for a right of relief. Therefore, the defender was not entitled to be relieved by the pursuer in respect of its liability to pay the third party's expenses.

Citation
[2017] ScotCS CSOH_112
Parties
Pursuer: Prospect Healthcare (Hairmyres) Limited; Defender: Keir Build Limited; Third Party: Carillion Construction Limited
Jurisdiction
Scotland
Judgment Date
29 August 2017
Procedural Posture
Commercial Action / Judgment Following Abandonment of Action and Motions on Expenses
Outcome
Defender's motion for relief against the pursuer in respect of third party expenses refused.
Legal Topics
Third Party Procedure, Expenses (costs), Indemnity, Abandonment of Action
Contract Law Civil Procedure Third Party Procedure Expenses (costs) Indemnity Abandonment of Action

Case Brief

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Parties

Prospect Healthcare (Hairmyres) Limited

Pursuer

Keir Build Limited

Defender

Carillion Construction Limited

Third Party

Procedural Posture

Commercial Action / Judgment Following Abandonment of Action and Motions on Expenses

Legal Issues

  1. 1 Whether the pursuer should be liable for the defender's liability to pay the third party's expenses after abandonment of the action
  2. 2 Whether substantial justice requires a departure from the general rule on third party expenses

Ratio Decidendi

The court held that the general rule in Scotland is that a party is only liable for the expenses of those against whom it has directed a case, unless there is unreasonable behaviour or a right of relief. The pursuer had not acted unreasonably and there was no legal basis for a right of relief. Therefore, the defender was not entitled to be relieved by the pursuer in respect of its liability to pay the third party's expenses.

Court Disposition

Defender's motion for relief against the pursuer in respect of third party expenses refused.

Orders

  • Pursuer found liable to defender for defender's expenses of the action.
  • Defender found liable to third party for third party's expenses.