MacDonald v. Nicholson & Anor [2011] ScotSC 4 (18 January 2011)

MacDonald v. Nicholson & Anor [2011] ScotSC 4 (18 January 2011)

The contract price was fixed at £30,000. The defenders were entitled to damages for the cost of rectifying defects, but this amount must be offset by the unpaid balance of the contract price. The Sheriff erred in awarding the full cost of rectification without such deduction. The correct sum due to the defenders is £9,721.86, representing the difference between the contract price and amounts paid plus rectification costs.

Citation
[2011] ScotSC 4
Parties
Pursuer and Appellant: Ian MacDonald; Defenders and Respondents: John Nicholson and Eveanne Nicholson
Jurisdiction
Scotland
Judgment Date
18 January 2011
Procedural Posture
Civil Appeal / Appeal Judgment
Outcome
Appeal sustained in part; decree for payment of £9,721.86 granted against the pursuer.
Legal Topics
Building Contracts, Breach of Contract, Damages, Quantification of Loss
Contract Law Construction Law Building Contracts Breach of Contract Damages Quantification of Loss

Case Brief

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Parties

Ian MacDonald

Pursuer and Appellant

John Nicholson and Eveanne Nicholson

Defenders and Respondents

Procedural Posture

Civil Appeal / Appeal Judgment

Legal Issues

  1. 1 Whether the contract price was £30,000 or an open-ended cost basis
  2. 2 Whether the defenders were entitled to damages for defective construction
  3. 3 Proper quantification of damages for breach of contract

Ratio Decidendi

The contract price was fixed at £30,000. The defenders were entitled to damages for the cost of rectifying defects, but this amount must be offset by the unpaid balance of the contract price. The Sheriff erred in awarding the full cost of rectification without such deduction. The correct sum due to the defenders is £9,721.86, representing the difference between the contract price and amounts paid plus rectification costs.

Court Disposition

Appeal sustained in part; decree for payment of £9,721.86 granted against the pursuer.

Orders

  • Amendment of Sheriff's findings to substitute 'withhold' for 'refuse' and to clarify quantification of loss.
  • Recall of Sheriff's interlocutor of 22 March 2010.