Stonehaven Magazines v Kincardine CC [1939] ScotCS CSIH_2 (19 July 1939)

Stonehaven Magazines v Kincardine CC [1939] ScotCS CSIH_2 (19 July 1939)

Sums borrowed ultra vires by the old county council to cover road account deficits, if used to discharge lawful liabilities, constitute a recoverable liability by the principle of unjust enrichment and are properly apportionable under section 21 of the 1929 Act. The burghs have title to challenge requisitions, but the liability in question is valid and can be met out of rates.

Citation
[1939] ScotCS CSIH_2
Parties
Pursuer: Magistrates of Stonehaven; Defender: Kincardineshire County Council
Jurisdiction
Scotland
Judgment Date
19 July 1939
Procedural Posture
Civil / Appeal (reclaiming Motion) Before the First Division
Outcome
action dismissed
Legal Topics
Local Authority Liabilities, Ultra Vires Borrowing, Rate Levying, Statutory Interpretation, Unjust Enrichment
Local Government Law Administrative Law Local Authority Liabilities Ultra Vires Borrowing Rate Levying Statutory Interpretation Unjust Enrichment

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Parties

Magistrates of Stonehaven

Pursuer

Kincardineshire County Council

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) Before the First Division

Legal Issues

  1. 1 Whether sums borrowed ultra vires by the old county council to cover road account deficits constituted a liability that could be apportioned to small burghs under section 21 of the Local Government (Scotland) Act, 1929.
  2. 2 Whether small burghs had title to challenge requisitions for such sums.
  3. 3 Whether expenditure to meet ultra vires liabilities could be met out of rates.

Ratio Decidendi

Sums borrowed ultra vires by the old county council to cover road account deficits, if used to discharge lawful liabilities, constitute a recoverable liability by the principle of unjust enrichment and are properly apportionable under section 21 of the 1929 Act. The burghs have title to challenge requisitions, but the liability in question is valid and can be met out of rates.

Court Disposition

action dismissed

Orders

  • Lord Ordinary's interlocutor recalled
  • Action dismissed