British Motor Trade Association v Gray [1951] ScotCS CSIH_3 (16 March 1951)

British Motor Trade Association v Gray [1951] ScotCS CSIH_3 (16 March 1951)

The covenant restricting resale of new motor vehicles is not void as an unreasonable restraint of trade, being reasonable as between the parties and in the public interest. The law of Scotland recognises an actionable wrong where a third party knowingly and without justification induces breach of contract. The petitioners' averments are relevant and sufficient to support the prayer for interdict, and the respondent's pleas fail.

Citation
[1951] ScotCS CSIH_3
Parties
Petitioner: British Motor Trade Association; Respondent: Gray
Jurisdiction
Scotland
Judgment Date
16 March 1951
Procedural Posture
Petition for Suspension and Interdict / Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor Allowing Proof After Debate
Outcome
Reclaiming motion refused; interlocutor of Lord Ordinary adhered to, subject to amendment of interim interdict for greater specificity.
Legal Topics
Restraint of Trade, Inducement of Breach of Contract, Price Maintenance Agreements, Interdict (injunction), Trade Association Covenants
Contract Law Tort/delict Trade Regulation Restraint of Trade Inducement of Breach of Contract Price Maintenance Agreements Interdict (injunction) Trade Association Covenants

Case Brief

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Parties

British Motor Trade Association

Petitioner

Gray

Respondent

Procedural Posture

Petition for Suspension and Interdict / Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor Allowing Proof After Debate

Legal Issues

  1. 1 Whether the covenant restricting resale of motor vehicles is void as an unreasonable restraint of trade
  2. 2 Whether a third party can be interdicted for procuring or inducing breach of such a covenant under Scots law
  3. 3 Whether the petitioners' averments are relevant and sufficient to support the prayer for interdict

Ratio Decidendi

The covenant restricting resale of new motor vehicles is not void as an unreasonable restraint of trade, being reasonable as between the parties and in the public interest. The law of Scotland recognises an actionable wrong where a third party knowingly and without justification induces breach of contract. The petitioners' averments are relevant and sufficient to support the prayer for interdict, and the respondent's pleas fail.

Court Disposition

Reclaiming motion refused; interlocutor of Lord Ordinary adhered to, subject to amendment of interim interdict for greater specificity.

Orders

  • First and second pleas in law for respondent repelled
  • Proof of averments allowed