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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Freund v Charles Scott Developments (South Devon) Ltd [2002] EWCA Civ 106 (21 January 2002) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2002/106.html Cite as: [2002] EWCA Civ 106 |
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COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM BRISTOL DISTRICT REGISTRY
MERCANTILE DIVISION
(MR JUSTICE JACOB)
Strand London WC2 Monday, 21st January 2002 |
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B e f o r e :
LORD JUSTICE CHADWICK
-and-
SIR CHRISTOPHER STAUGHTON
____________________
GEORGE FREUND | Claimant/Respondent | |
- v - | ||
CHARLES SCOTT DEVELOPMENTS (SOUTH DEVON) LTD | Defendant/Appellant |
____________________
Smith Bernal Reporting Limited
190 Fleet Street, London EC4A 2AG
Telephone No: 020 7421 4040
Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
MR L BLOHM (instructed by Hugh James Ford Simey, Devon EX1 1EJ) appeared on behalf of the Respondent
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Crown Copyright ©
Monday, 21st January 2002
"This AGREEMENT is made on the sixth day of March one thousand nine hundred and ninety BETWEEN GEORGE FREUND... (hereinafter called 'the Vendor') of the one part and TRIDENT DEVELOPMENT LIMITED... (hereinafter called 'the Purchaser') of the other part
NOW IT IS HEREBY AGREED as follows:-
1. In this Agreement the following expressions shall have the following meanings assigned to them:-(a) 'the Property' means the freehold property described in the Schedule hereto...(b) 'Contract Period' shall mean a period of ten years from this Agreement(c) 'Contract Date' shall mean the third working day after the service by the Purchaser of a notice pursuant to the provisions of clause 2(c) hereof or by the Vendor pursuant to the provisions of Clause 3 hereofd)'First Deposit' shall mean the sum of twenty thousand pounds(e) 'Planning Permission' shall mean the grant of outline permission or the approval of any matters reserved in a planning permission following a planning application or appeal made by or on behalf of the Purchaser... for any residential development of the Property or any part or parts thereof OR shall mean the designation of the Property by the local planning authority as an area intended for residential development within the local Structure Plan(f) 'Purchase Money' shall mean eighty per cent (80%) of the Open Market Value of the Property on the Contract Date(g) 'Open Market Value' shall mean the value of the Property in the open market with the benefit of vacant possession on a sale between a willing vendor and a willing purchaser and shall be such sum as shall be agreed between the parties prior to the Contract Date or in the absence of agreement as shall be determined by a valuer appointed by the President for the time being of the Royal Institution of Chartered Surveyors on the application of either party at any time thereafter and the decision of the valuer shall be final and binding.2.(a) This Contract shall be conditional upon the Planning Permission being granted within the Contract Period(b) If the Planning Permission shall not be granted within the Contract Period this Contract shall determine(c) If Planning Permission shall be granted within the Contract Period the Purchaser shall notify the Vendor forthwith(d) A deposit of ten per cent of the Purchase Money shall be paid to the Vendor's solicitors on the Contract Date or three working days after the amount of the Purchase Money shall have been determined in accordance with the provisions of Clause 1(g) hereof whichever is the later(e) Completion of this Agreement shall take place at the offices of the Vendor's solicitors four weeks after the Contract Date... and upon that date the Vendor shall convey the Property to the Purchaser free from encumbrances3. The vendor shall be entitled at any time before the Property is zoned for residential development by the local planning authority or before the Planning Permission shall have been granted but not later than the 25th September 1995 to serve notice on the Purchaser requiring the Purchaser to purchase the Property and thereupon the Contract shall become unconditional and the provisions contained in Clauses 2(d) and (e) shall apply.4. The Vendor shall sell as beneficial owner and the Purchaser shall purchase the Property in consideration of the Purchase Money10. The Vendor hereby undertakes to execute any agreement or agreements required under the provisions of section 52 of the Act [that is the Town & Country Planning Act 1990] or any other agreement which may be required by any statutory or local authority or other body as a prerequisite of Planning Permission PROVIDED THAT the Purchaser indemnifies the Vendor against all reasonable and [proper] costs incurred by the Vendor in connection with the execution of any such agreements11. The Vendor hereby agrees with the Purchaser not to apply for or procure an application for any Planning Permission for the Property nor to oppose or procure opposition for any application for the Planning Permission."
"Firstly then, is Mr Blohm right in saying that the clause means exactly what it says, namely that the triggering planning application, which one assumes has succeeded, has to have been made by or on behalf of Trident and none other? Mr Blohm says the recital describes Trident as 'hereinafter called the Purchaser' with a capital P. ... I think there is no escape from that. This agreement did not contain a machinery for planning permission to be obtained by an assignee of the Purchaser, unless of course that assignee was acting for the Purchaser, ie Trident. That is not to say that Trident could not assign the benefit of the agreement, but the machinery for doing it would require that any planning application was made by or on Trident's behalf."
"By 8th November Mr Palmer acting for Mr Freund will decide whether he is going to mount a challenge to the document dated 6th March 1990. If no challenge is to be made the parties will have one month, that is until 8th December, to submit written representations to me to assist me with my Valuation.
3. If a challenge is to be made we will know that by the 8th November and I will then agree to be 'put on hold' until such time as the dispute is settled and then we will make a fresh timetable."
"In accordance with the directions that you gave on 18 October, we write to confirm that Mr Freund wishes to mount a challenge to the validity of the Agreement dated 6 March 1990. We believe that you are aware that Mr Freund does not believe that this accurately reflects the agreement that was reached at the time. We believe there may be other grounds upon which the Agreement can be challenged.
Due to the importance of the matter to Mr Freund - he is of course at risk of losing his home - we are seeking advice from a Barrister as urgently as possible. If so advised, and if agreement cannot be reached with Over Taylor Biggs and their Clients, then we anticipate lodging an application seeking an appropriate Direction with Exeter County Court.
In the circumstances, would you please agree to put the matter on hold for the time being. We anticipate receiving Counsel's Opinion within one month when we should be in a position to either lodge the papers with the Court or ask you to proceed further."
"There are only two alternatives which our clients are prepared to extend. Either the contract proceeds in accordance with its terms or the arrangement proposed in our Without Prejudice letter of 21st January is adopted. There is little doubt that this represents an extremely conciliatory approach...
Our clients are not prepared to go any further in accommodating Mr Freund and we are instructed that unless we hear from you by 15th February with confirmation that these arrangements are agreed the proposal will be withdrawn and we will be asking Mr Key [that is the valuer] to proceed with his valuation exercise with a view to concluding the purchase and obtaining vacant possession of the whole of the property with as little further delay as possible."
"Whilst our client's position remains reserved generally, the two alternatives that you set out in your letter, both involve Messrs Stratton & Holborow undertaking a valuation. In the circumstances, therefore, we would suggest that Mr Key is instructed to proceed with his valuation. We will then write to you further once our client has time to consider his position generally."
"Where a contract involves personal skill or confidence, such as a contract between an author and publisher, the one shall write and the other publish a book, it is not assignable, and this principle extends to cases where the ability of one party to a contract to conduct his business and make it pay, and so to be able to pay the other party, is the subject matter of personal confidence. The same rule applies where the effect of the assignment of rights under a contract would be to increase the burden on the other party."
"This contract shall be conditional upon the planning permission being granted within the contract period."
"The grant of outline or detailed planning permission following a planning application or appeal made by or on behalf of the purchaser..."