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Sutcliffe v Lloyd and another [electronic resource]

Language: English Publication details: 2008Subject(s): Online resources: Summary: [2008] EWCH 1329 (Ch).The case shows that the amount awarded by a court may be much less than a claimant might expect. The case also highlights the importance of drafting comprehensive dispute resolution clauses in construction contracts. The case was heard by the High Court on appeal from [2007] EWCA Civ 153 (L138245). Two property developers Sutcliffe (S) and Lloyd (L) worked together on a residential property development scheme, buying land and obtaining planning permission. S claimed a large sum in damages after L went ahead without him. The court had to determine the level of damages payable to a party for being incorrectly excluded from a development project. Held: S had been wrongly excluded from the final project. However, S had not funded the project which was not successful, or taken any risks. In addition, he had done other profitable work instead, and so was not justified in making a claim for an equal share of the profit. The court awarded compensation for monies spent on the project (i.e. minimum equity). This was a fraction of the amount claimed, and probably far less than the legal costs of bringing the case.
Holdings
Item type Current library Call number Copy number Status Barcode
Law report Virtual Online ONLINE PUBLICATION (Browse shelf(Opens below)) 1 Available 144348-2001

[2008] EWCH 1329 (Ch).The case shows that the amount awarded by a court may be much less than a claimant might expect. The case also highlights the importance of drafting comprehensive dispute resolution clauses in construction contracts. The case was heard by the High Court on appeal from [2007] EWCA Civ 153 (L138245). Two property developers Sutcliffe (S) and Lloyd (L) worked together on a residential property development scheme, buying land and obtaining planning permission. S claimed a large sum in damages after L went ahead without him. The court had to determine the level of damages payable to a party for being incorrectly excluded from a development project. Held: S had been wrongly excluded from the final project. However, S had not funded the project which was not successful, or taken any risks. In addition, he had done other profitable work instead, and so was not justified in making a claim for an equal share of the profit. The court awarded compensation for monies spent on the project (i.e. minimum equity). This was a fraction of the amount claimed, and probably far less than the legal costs of bringing the case.