Reid v. M'Gill [1912] ScotLR 5 (12 June 1912)

Reid v. M'Gill [1912] ScotLR 5 (12 June 1912)

The lease to M'Gill, considering its duration, lack of fixed rent, absence of exclusion of assignees, unduly favourable terms to the tenant, and other unusual provisions, did not constitute a fair and reasonable act of administration by the proprietor and was therefore not binding on the bondholder.

Citation
[1912] ScotLR 5
Parties
Pursuer (plaintiff) in Principal Action: William Reid; Defender (defendant) in Principal Action; Pursuer in Counter Action: James M'Gill
Jurisdiction
Scotland
Judgment Date
12 June 1912
Procedural Posture
Civil / Judgment After Proof (trial) in Outer House, First Division
Outcome
Decree granted in favour of Reid; lease held not binding on bondholder.
Legal Topics
Right in Security, Lease, Bond and Disposition in Security, Mineral Lease, Validity of Lease Against Bondholder
Property Law Secured Transactions Land Law Right in Security Lease Bond and Disposition in Security Mineral Lease Validity of Lease Against Bondholder

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Parties

William Reid

Pursuer (plaintiff) in Principal Action

James M'Gill

Defender (defendant) in Principal Action; Pursuer in Counter Action

Procedural Posture

Civil / Judgment After Proof (trial) in Outer House, First Division

Legal Issues

  1. 1 Whether a mineral lease granted by a proprietor after granting a bond and disposition in security is valid and binding on the bondholder when its terms are prejudicial to the bondholder's rights.

Ratio Decidendi

The lease to M'Gill, considering its duration, lack of fixed rent, absence of exclusion of assignees, unduly favourable terms to the tenant, and other unusual provisions, did not constitute a fair and reasonable act of administration by the proprietor and was therefore not binding on the bondholder.

Court Disposition

Decree granted in favour of Reid; lease held not binding on bondholder.

Orders

  • Declarator that Reid is absolute proprietor of the minerals and that M'Gill has no right, title, or interest as lessee or otherwise.