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Technotrade Ltd v Larkstore Ltd

Language: English Publication details: 2006Subject(s): Online resources: Summary: [2006] EWCA Civ 1079, 27 July 2006. Appeal by T, a surveying company, against a decision that its report on the physical condition of land which had been prepared for S, and then assigned to L, could be relied on by L in a breach of contract claim against T. The report by T had recommended that a sloping site was suitable for residential development. After S sold the site to L, a landslip occurred on the land that damaged adjoining properties, whose owners then sued L. S then assigned to L its rights and benefits under the report and the right to sue T. A preliminary issue arose as to whether L was able to recover the loss it had suffered by relying on the deed of assignment. The judge found that L would be entitled to recover substantial damages from T, even though S had not suffered damage when it was entitled to the benefit of the contract, and the landslip had occurred before the assignment. T appealed. "Held": L had the right to sue T for breach of contract. S had assigned to L a cause of action for breach of contract against T and the legal remedies for it. The assignment did not prejudice T by exposing it to a claim for damages by L that S could not have brought. If S had not sold the land to L, it would not have assigned the cause of action, and it could have recovered substantial damages against T for the landslip. Appeal dismissed.
Holdings
Item type Current library Call number Copy number Status Barcode
Law report Virtual Online ONLINE PUBLICATION (Browse shelf(Opens below)) 1 Available 134578-1001

[2006] EWCA Civ 1079, 27 July 2006. Appeal by T, a surveying company, against a decision that its report on the physical condition of land which had been prepared for S, and then assigned to L, could be relied on by L in a breach of contract claim against T. The report by T had recommended that a sloping site was suitable for residential development. After S sold the site to L, a landslip occurred on the land that damaged adjoining properties, whose owners then sued L. S then assigned to L its rights and benefits under the report and the right to sue T. A preliminary issue arose as to whether L was able to recover the loss it had suffered by relying on the deed of assignment. The judge found that L would be entitled to recover substantial damages from T, even though S had not suffered damage when it was entitled to the benefit of the contract, and the landslip had occurred before the assignment. T appealed. "Held": L had the right to sue T for breach of contract. S had assigned to L a cause of action for breach of contract against T and the legal remedies for it. The assignment did not prejudice T by exposing it to a claim for damages by L that S could not have brought. If S had not sold the land to L, it would not have assigned the cause of action, and it could have recovered substantial damages against T for the landslip. Appeal dismissed.