Aberdeen Harbour Commissioners v. Adam [1910] ScotLR 874 (25 February 1910)

Aberdeen Harbour Commissioners v. Adam [1910] ScotLR 874 (25 February 1910)

Where a bail bond limits a cautioner's liability to a specified sum for 'damages and costs' found due by a competent court, and the cautioner pays taxed expenses under a joint and several decree in the action to fix liability, those expenses are to be imputed towards the cap in the bond, provided no additional costs were caused by the cautioner's intervention.

Citation
[1910] ScotLR 874
Parties
Pursuer: Aberdeen Harbour Commissioners; Defender/reclaimer/cautioner: Thomas Adam
Jurisdiction
Scotland
Judgment Date
25 February 1910
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary
Outcome
Lord Ordinary's interlocutor recalled; decree for defender for balance only; pursuers found liable in expenses.
Legal Topics
Bail Bond Construction, Imputation of Payments, Liability for Damages and Costs, Suretyship
Maritime Law Contract Law Bail Bond Construction Imputation of Payments Liability for Damages and Costs Suretyship

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Parties

Aberdeen Harbour Commissioners

Pursuer

Thomas Adam

Defender/reclaimer/cautioner

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary

Legal Issues

  1. 1 Whether a cautioner (surety) under a bail bond can impute expenses paid under a joint and several decree towards the liability cap in the bond for damages and costs.
  2. 2 Whether expenses incurred in defending the action are covered by the bail bond's reference to 'damages and costs'.
  3. 3 Whether the defender's participation in the defence disentitles him from such imputation.

Ratio Decidendi

Where a bail bond limits a cautioner's liability to a specified sum for 'damages and costs' found due by a competent court, and the cautioner pays taxed expenses under a joint and several decree in the action to fix liability, those expenses are to be imputed towards the cap in the bond, provided no additional costs were caused by the cautioner's intervention.

Court Disposition

Lord Ordinary's interlocutor recalled; decree for defender for balance only; pursuers found liable in expenses.

Orders

  • Lord Ordinary's decree recalled.
  • Decree against defender for £597 4s 7d in full satisfaction of the summons.