THE ENGINE YARD EDINBURGH LTD AND ANOTHER AGAINST BAYNE STEVENSON ASSOCIATES LTD [2024] ScotCS CSOH_13 (13 February 2024)

THE ENGINE YARD EDINBURGH LTD AND ANOTHER AGAINST BAYNE STEVENSON ASSOCIATES LTD [2024] ScotCS CSOH_13 (13 February 2024)

The contract did not confer a ius quaesitum tertio on the first pursuer, as the benefit to the first pursuer was incidental to the second pursuer's substantive interest in securing the collateral warranty. The obligation to deliver the collateral warranty was a pure obligation subsisting from the date of contract (22 May 2017), not contingent on a written request, and was extinguished by prescription after five years without a relevant claim.

Citation
[2024] ScotCS CSOH_13
Parties
First Pursuer: The Engine Yard Edinburgh Limited; Second Pursuer: Allenbuild Limited; Defender: Bayne Stevenson Associates Limited
Jurisdiction
Scotland
Judgment Date
13 February 2024
Procedural Posture
Commercial Action (court of Session, Outer House) / Debate on Relevancy of Pleadings; Judgment on Preliminary Legal Issues
Outcome
Defender assoilzied (absolved) from the second conclusion; remaining conclusions dismissed; pursuers' pleas repelled.
Legal Topics
Ius Quaesitum Tertio (third Party Rights), Collateral Warranty, Prescription of Contractual Obligations, Privity of Contract, Interpretation of Contract Clauses
Contract Law Construction Law Scots Law Prescription and Limitation Ius Quaesitum Tertio (third Party Rights) Collateral Warranty Prescription of Contractual Obligations Privity of Contract +1 more

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Parties

The Engine Yard Edinburgh Limited

First Pursuer

Allenbuild Limited

Second Pursuer

Bayne Stevenson Associates Limited

Defender

Procedural Posture

Commercial Action (court of Session, Outer House) / Debate on Relevancy of Pleadings; Judgment on Preliminary Legal Issues

Legal Issues

  1. 1 Whether the contract created a ius quaesitum tertio in favour of the first pursuer entitling it to demand a collateral warranty from the defender
  2. 2 Whether the obligation to deliver a collateral warranty was extinguished by prescription under the Prescription and Limitation (Scotland) Act 1973

Ratio Decidendi

The contract did not confer a ius quaesitum tertio on the first pursuer, as the benefit to the first pursuer was incidental to the second pursuer's substantive interest in securing the collateral warranty. The obligation to deliver the collateral warranty was a pure obligation subsisting from the date of contract (22 May 2017), not contingent on a written request, and was extinguished by prescription after five years without a relevant claim.

Court Disposition

Defender assoilzied (absolved) from the second conclusion; remaining conclusions dismissed; pursuers' pleas repelled.

Orders

  • Sustain defender's sixth plea-in-law and assoilzie it from the second conclusion of the Summons.
  • Sustain defender's first plea-in-law and dismiss the rest of the extant conclusions.