Constant v. Kincaid & Co. [1902] ScotLR 39_636 (27 May 1902)

Constant v. Kincaid & Co. [1902] ScotLR 39_636 (27 May 1902)

The assignee of the trustee in bankruptcy is entitled to recover the full amount of damages for breach of contract from the sub-contractor, as the bankruptcy of the principal contractor does not diminish the substantive liability of the sub-contractor. The right to damages is vested in the trustee and passes to the...

Source-derived case information.

Citation
[1902] ScotLR 39_636
Parties
Pursuer/respondent/assignee: Joseph Constant; Defender/appellant: John G. Kincaid & Company; Bankrupt Principal Contractor/cedent: Carmichael, Maclean, & Company
Jurisdiction
Scotland
Judgment Date
27 May 1902
Procedural Posture
Action for Damages for Breach of Contract / Appeal From Sheriff Court to Court of Session Inner House Second Division
Outcome
appeal dismissed; interlocutor affirmed
Legal Topics
Effect of Bankruptcy on Contractual Claims, Assignation of Claims, Measure of Damages, Liability of Sub Contractor, Rights of Trustee in Bankruptcy
Bankruptcy Contract Law Effect of Bankruptcy on Contractual Claims Assignation of Claims Measure of Damages Liability of Sub Contractor Rights of Trustee in Bankruptcy

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Parties

Joseph Constant

Pursuer/respondent/assignee

John G. Kincaid & Company

Defender/appellant

Carmichael, Maclean, & Company

Bankrupt Principal Contractor/cedent

Procedural Posture

Action for Damages for Breach of Contract / Appeal From Sheriff Court to Court of Session Inner House Second Division

Legal Issues

  1. 1 Is the assignee of a trustee in bankruptcy entitled to recover the full amount of damages for breach of contract from a sub-contractor, regardless of the dividend paid by the bankrupt estate?
  2. 2 Does the bankruptcy of the principal contractor limit the liability of the sub-contractor to the amount paid out as dividend to creditors?

Ratio Decidendi

The assignee of the trustee in bankruptcy is entitled to recover the full amount of damages for breach of contract from the sub-contractor, as the bankruptcy of the principal contractor does not diminish the substantive liability of the sub-contractor. The right to damages is vested in the trustee and passes to the assignee, unaffected by the dividend paid by the bankrupt estate.

Court Disposition

appeal dismissed; interlocutor affirmed

Orders

  • decree in favour of pursuer for £1350
  • defenders' pleas-in-law repelled