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You are here: BAILII >> Databases >> Scottish Sheriff Court Decisions >> McNally & Anor v. Worrell [2006] ScotSC 106 (05 October 2006)
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Cite as: [2006] ScotSC 106

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SHERIFFDOM OF GRAMPIAN HIGHLAND AND ISLANDS AT ABERDEEN

 

A1831/05

JUDGEMENT

 

of

 

SHERIFF PRINCIPAL SIR STEPHEN S T YOUNG Bt QC

 

in the cause

 

(FIRST) JOHN PAUL McNALLY and (SECOND) DONNA LYNNE McNALLY

 

Pursuers and Appellants

 

against

 

JOSEPHINE EDITH WORRELL

 

Defender and Respondent

 

 

 

 

 

Act: Mr Colin Mackenzie, advocate, instructed by Bruce MacDonald & Co, Aberdeen

Alt: Mr W H Summers, solicitor, Davies Wood Summers, Aberdeen

 

 

Aberdeen: 5th October 2006

 

The sheriff principal, having resumed consideration of the cause, allows the appeal and recalls the interlocutor of the sheriff dated 12 July 2006; repels the first and tenth pleas-in-law for the pursuers; repels the first and fourth pleas-in-law for the defender and also her third plea-in-law to the extent that it refers to "supposed fraudulent misrepresentations" by her; quoad ultra before answer allows parties a proof of their respective averments on a date to be afterwards fixed by the sheriff; reserves meantime all questions of expenses and appoints parties to be heard thereon in chambers at Aberdeen Sheriff Court on Monday 23 October 2006 at 2.00 pm.

 

 

 

 

 

Note

 

[1] In this case the pursuers and appellants in terms of crave 1 ask the court to grant decree against the defender and respondent for payment to them of the sum of £12,044.87. In terms of craves 2 and 3 decree is sought against the defender for payment to the first and second pursuers respectively of the sum of £5,000 in each case.

 

[2] The background to the case is that by missives dated 18 and 31 July and 23 August 2000 the defender agreed to sell and the pursuers agreed to purchase the heritable property known as Moss End, Whitecross Steading, Chapel of Garioch, Inverurie. In pursuance of the missives the defender executed a disposition on 26 September 2000 which was delivered to the pursuers on the agreed date of entry, 28 September 2000. The property was not connected to the mains water system and the missives therefore contained certain provisions to the effect that the pursuers as owners of the property should have the right to use the water supply system from a well which served the property and a neighbouring property known as "The Steading". In due course I shall refer in more detail to the pursuers' averments, but in short they maintain that the water supply to their property from the well was inadequate and that they suffered various losses as a result.

 

[2] The action was raised in August 2005 and in its original form was based exclusively on the claim that the defender had been in breach of the contract constituted by the missives between the parties. But on 7 March 2006 the sheriff allowed a minute of amendment for the pursuers to be received into process. In terms of this minute of amendment they sought to add a second basis of claim, namely that they had been induced to purchase the property as a result of fraudulent misrepresentations made to them by the defender. After the usual amendment process, the sheriff on 15 May 2006 opened the record and allowed it to be amended in terms of the pursuers' minute of amendment.

 

[3] The defender tabled four pleas-in-law directed to the relevancy and specification of the pursuers' averments and, after a debate on 9 June 2006, the sheriff by interlocutor dated 12 July 2006 sustained two of these pleas-in-law, namely the first and third, and dismissed the action. In short, he held the pursuers' averments in support of both branches of their claim, namely breach of contract and fraudulent misrepresentation, to be irrelevant and lacking in specification. It is this interlocutor which is the subject of the present appeal.

[4] In their original grounds of appeal the pursuers sought to challenge the sheriff's decision to dismiss their claim in both its branches. But these grounds of appeal were subsequently deleted in their entirety and in their amended grounds of appeal the pursuers made it plain that they sought to challenge only the sheriff's decision to dismiss their claim to the extent that it was based upon alleged fraudulent misrepresentations on the part of the defender. They no longer challenged his decision to dismiss the claim to the extent that it was based upon breach of contract on her part, and at the hearing of the appeal counsel for the pursuers confirmed that they no longer maintained that they were entitled to payment of damages by the defender on the basis of breach of contract on her part.

 

[5] At this point it will be convenient to set out those parts of the pursuers' pleadings which were the focus of the discussion at the hearing of the appeal. In article 2 of the condescendence the pursuers describe how they entered into missives with the defender and received a disposition of the property on the agreed date of entry, namely 28 September 2000. In article 3 they set out in full certain terms of these missives which, while they are of assistance in understanding the background to the case, no longer form the basis of their claim. Accordingly I do not think it is necessary to set them out in full here.

 

[6] In article 4 the pursuers aver, inter alia:

 

The property was not connected to the mains water system. It was therefore incumbent upon the defender in terms of the said term of the contract to make provision for a good and sufficient supply of water supply for the property. The defender purported to do so by the provision of a well on land owned by the defender adjoining the property, by granting the right to use the well and pipes leading therefrom to the property. This water supply was shared with the property known as ...... The Steading ...... which is a property with a dwellinghouse, which was sold by the defender to third parties in August 1998 ..... Explained and averred that prior to the conclusion of the missives relative to the property the defender made certain representations to the pursuers concerning the quantity of water available from the well serving the property. In or about July 2000 the pursuers met with the defender on the property. The pursuers enquired of the defender about the water supply for the property. The first pursuer told the defender that he had never before inhabited a property served by a private water supply and that both pursuers were concerned whether the well would provide an adequate supply of water for the property. The defender pointed to the well which is shown marked "Well" on "Plan Two" annexed to the disposition delivered to the pursuers by the defender as hereinbefore condescended upon. The defender stated to the pursuers that supply of water was more than adequate for the property and the neighbouring property with which the supply was shared; there was a certificate with Aberdeenshire Council to prove that the flow of water from the well equated to 18,000 gallons per day and that the said Council was satisfied that for its intended purpose, namely the supply of the said two houses, the water supply was adequate. This representation having been made, and the pursuers having satisfied themselves that such a flow rate was more than adequate, their concerns were satisfied ....... But for the said representations made by the defender about the water supply the pursuers would not have concluded the missives. Had the defender told the pursuers that she did not know what quantity of water the well could supply, they would not have concluded the missives .......

 

[7] In article 5 of the condescendence the pursuers aver, inter alia:

 

......... the water supply provided by the defender was not sufficient namely sufficient in quantity. The well from which the supply came, serving the pursuers' dwellinghouse and that of a neighbouring proprietor was not capable of providing a sufficient supply of water in quantity ....... The supply of water was at all material times variable and liable to failure after three weeks of dry weather. It was inadequate for supplying water to two dwellinghouses, in particular the house owned by the pursuers which is a three bedroomed house and the house known as " The Steading" which is a five bedroomed house. The supply failed on 23 June 2001 for twelve days. It failed again on 9 August 2001 for several weeks. At all material times, during the summer months the well was capable of supplying up to a maximum of 500 litres (109.985 gallons) per day ...... The well ....... should have been capable of supplying at least 600 gallons (2727.654 litres) per day, this being a minimum figure for the two dwellinghouses supplied by the well ....... Separatim, the said loss, injury and damage was caused by the fraudulent misrepresentations made by the defender. The representations made by the defender to the pursuers concerning the quantity of water available from the well serving the property were false and fraudulent. The representation that the well had a flow of 18,000 gallon per day was false. The 18,000 gallon per day statistic applied, as the defender well knew, not to the well serving the property but to (another) well ........ The defender did not know the flow rate of the well serving the property and she had no reason to believe that the 18,000 gallon per day statistic could be applied in good faith to the well serving the property ......

 

[8] The pursuers' averments of loss are set out in article 6 which, so far as material, is in the following terms:

 

As a result of the .......... fraudulent misrepresentations made by the defender the pursuers have suffered loss and damage. Together with the neighbouring proprietors, Mr and Mrs A.S. Bunkell, who also received water from the same well they engaged through solicitors in abortive negotiations, in an endeavour to mitigate loss and damage, with defender for the provision of' an alternative supply of water from a well or wells on the defender's property. The negotiations failed because of the unreasonableness of the defender who demanded that the pursuers pay for the costs of provision of a new supply. The pursuers and the said neighbouring proprietors therefore developed an alternative supply on the property of Mr and Mrs Bunkell, incurring expense of provision of the well, costs of laying pipes etc, and associated conveyancing costs relative to securing necessary servitude rights for the pursuers and their successors in title. The cost of the services of a hydrological surveyor to find a new and adequate water supply and provide a report thereanent was £782. Excavation of a well, track for pipes, and hole for a catchment tank cost £1,175. The supply and fitting of a borehole pump, potable water tank, pump, pipes and associated equipment cost £4,682.38. The transportation of rig equipment and associated labour cost £4,035.54. Conveyancing costs included: £1,255.75 for investigation of the title of the said Mr and Mrs Bunkell in relation to the grant by them of a servitude right; and preparation of a deed of servitude and registration of the same; and £114.20 for preparation of a plan and copies thereof depicting the servitude right; The new supply became available in or about August 2002. The pursuers suffered vexation and inconvenience because of the lack of an adequate water supply, and the measures necessary to remedy the situation. The pursuers also suffered further vexation and inconvenience. When there was no water available they were compelled to seek help from friends and relatives for washing facilities, and had to reside with relatives in Ireland for a period. In the circumstances the pursuers assess their joint loss and damage suffered at £12,044.87, which is the sum first craved and assess their separate losses for vexation and inconvenience at £5,000 each, and these sums are those second and third craved.

 

[9] At the hearing of the appeal counsel for the pursuers and the defender's solicitor accepted as a correct statement of the law a passage from the judgement of Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC (Scotland) Limited (Court of Session, 19 January 2001, unreported) which is quoted in paragraph [39] of the judgement of Temporary Judge M G Thomson QC in Semple Cochrane plc v Clark 2003 SLT 532. At paragraph 14 of his judgement Lord MacFadyen stated:

 

It seems to me that, in identifying the tests which averments of fraudulent misrepresentation must pass, it is worth making the distinction between relevancy and specification. So far as relevancy is concerned, to make a case that a contract was induced by fraudulent misrepresentation, the pursuer must in my opinion set out in averment (i) the representation that was made, (ii) that the representation was false, (iii) that the maker of the representation knew when he made it that it was false (or acted recklessly, in that he did not know and was indifferent to whether it was true or false), (iv) that the maker of the representation, if not the defender, was one for whose actings the defender was in law answerable, and (v) that the pursuer was induced by the representation to enter into the contract in question.

 

[10] At pages 7 and 8 of his judgement the sheriff summarised the submissions that were made for the defender at the debate on the question whether the pursuers had relevant averments in relation to the issue of fraudulent misrepresentation. In short, it appears from what the sheriff says here that it was submitted that the pursuers had failed to set forth averments which satisfied the test outlined in a passage in the judgement of Lord MacFadyen in The Royal Bank of Scotland plc v Holmes 1999 SLT 563 at page 569K/L where he stated: "It is in my view essential for the party alleging fraud clearly and specifically to identify the act or representation founded upon, the occasion on which the act was committed or the representation made, and the circumstances relied on as yielding the inference that that act or representation was fraudulent".

 

[11] At page 15 of his judgement the sheriff explained why, in his opinion, the pursuers' averments about fraud did not come up to the standard required. In short, he appears to have taken the view that the third and fourth requirements set out by Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC (Scotland) Limited had not been satisfied. Thus he stated, inter alia:

 

As is made clear by the authorities cited and in particular in Semple Cochrane, the pursuers must aver (a) that a representation was made; (b) that it was false; (c) that the defender knew that it was false or that she acted recklessly in that she did not know, but was indifferent as to the truth or otherwise of the representation; (d) that the maker of the representation, if not the defender, was someone for whose actings she was in law responsible, and (e) that the pursuers were induced to contract by these representations. It is clear from the pursuers' averments that a representation was made by the defender, and that the pursuers were induced by it to enter into the contract. It is said that the representation was false (albeit that it denied by the defender). However, it is not stated that the defender either knew that it was false or ought to have known, or that she did not care one way or the other. It also appears from the pleadings that the defender was giving to the pursuers information which she had from the local authority, but it is not said in the pleadings that she was, in law, answerable for the local authority. That might be a difficult thing to prove in any event. In these respects, the pursuers averments do not meet the standard required, and are irrelevant.

 

[12] In their first ground of appeal as amended the pursuers drew attention to the reasons given by the sheriff at page 15 of his judgement for holding that the averments in support of their case of fraud were irrelevant. The pursuers went on to state that the solicitor for the defender did not submit to the sheriff that the pursuers' case based on the fraudulent misrepresentations of the defender was irrelevant for the reasons stated by the sheriff. After referring to paragraph [39] of the judgement of Temporary Judge Thomson QC in Semple Cochrane plc v Clark the pursuers stated:

 

Under reference to the five enumerated matters, the defender's solicitor submitted that the pursuers' averments failed to meet the first requirement because they set out what the pursuers were led to believe as the result of the representation as opposed to setting out the representation itself. He stated in argument that he was not submitting that the pursuers' averments did not meet the second, third, fourth or fifth requirements.

 

[13] At the hearing of the appeal the defender's solicitor confirmed that at the debate he had not addressed the sheriff in relation to the second, third, fourth and fifth requirements set out by Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC (Scotland) Limited and that he had not maintained, and did not now maintain, that the pursuers' averments were not apt to satisfy these requirements. He further confirmed that the argument which he had made to the sheriff on this branch of the case had been confined to the submission that the pursuers' averments did not satisfy the first requirement set out by Lord MacFadyen.

 

[14] It will be noted that the first requirement as set out by the sheriff at page 15 of his judgement was "(a) that a representation was made". I did not understand it to be disputed that this was not a correct statement of the law and that the first requirement was instead that the pursuers should set out in averment the representation that was made. Here counsel for the pursuers accepted that it was not enough for them to aver what they were induced to believe as the result of representations made to them by the defender. On the contrary, what they had to do was to set out in averment the representations that had been made, and this they had done in the passage in article 4 of the condescendence where they had stated: "The defender stated to the pursuers that supply of water was more than adequate for the property and the neighbouring property with which the supply was shared; there was a certificate with Aberdeenshire Council to prove that the flow of water from the well equated to 18,000 gallons per day and that the said Council was satisfied that for its intended purpose, namely the supply of the said two houses, the water supply was adequate". (In passing, I should record that it was accepted that at the debate before the sheriff the pursuers had been allowed to amend the first of these sentences by substituting the word "stated" for the word "represented").

 

[15] In response, the defender's solicitor submitted that the averments in the passage relied upon by counsel were not averments of what the defender had said but rather were averments of what the pursuers had inferred or taken from what had been said by the defender. In order to satisfy the first requirement set out by Lord MacFadyen it was necessary that the exact words used by the defender should be set out in averment. Since the pursuers had not done this the first requirement had not been satisfied and it followed that their averments in support of their case of fraud were irrelevant.

 

[16] In a brief reply, counsel for the pursuers suggested that the defender's solicitor was looking for a higher standard of specification than the law required. It was not necessary, said counsel, for the defender's verbal representations to be set out in direct speech. It was sufficient that the substance of these representations should have been set forth in averment. Here counsel drew attention to the last part of the passage in the judgement of Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC (Scotland) Limited which had been quoted by Temporary Judge Thomson QC in Semple Cochrane plc v Clark. This passage reads:

 

So far as specification is concerned, the authorities in my view justify the conclusion that when fraud is alleged, a high standard of specification is required. It seems to me that it is appropriate to bear in mind that the rule requiring pleadings to be specific is founded in fairness. The party against whom any allegation is made is entitled to have fair notice in the other party's pleadings of the substance of the allegation. Where the allegation is of fraud, the courts have applied that rule of fairness particularly strictly. But, in my view, even in a case of fraud, a defender is not entitled to complain of lack of specification if the pursuer's pleadings give him what in the circumstances amounts to fair notice of the allegation. He cannot, through reliance on the authorities about the high standard of specification required in cases of fraud, demand that the pursuer's averments go into more detail than is necessary to give fair notice of the case. Subject to that point, however, it must in my view be borne in mind that the strict standard of specification will be applied to each of the essential elements of the case identified above."

 

[17] In my opinion the submissions for the pursuers on this point are to be preferred. Unless they had a tape recorder with them or else had pen and paper to hand and an exceptionally good memory (and, understandably, there was no suggestion that they should have had any of these), and so were able to create a contemporaneous record, it seems to me that it would be demanding far too high a standard of the pursuers to expect that they should be able to set out in averment the exact words used by the defender on the occasion in question. In my opinion it is sufficient that they should have given fair notice to the defender of the substance of what they maintain was stated by her, and this they have done in the passage in article 4 of the condescendence upon which counsel for the pursuers relied. In essence they are saying that the defender made three statements to them, namely (1) that the supply of water was more than adequate for the property and the neighbouring property with which the supply was shared, (2) that there was a certificate with Aberdeenshire Council to prove that the flow of water from the well equated to 18,000 gallons per day, and (3) that the Council was satisfied that for its intended purpose, the supply of the two houses, the water supply was adequate. In my opinion this gives the defender fair notice of what she is supposed to have said and it is not necessary that the pursuers should have gone further than this and stated the exact words which were used by her at the time.

 

[18] For the sake of completeness, I should mention that in the course of his submissions the defender's solicitor founded strongly on two passages in the judgement of the Lord President in Drummond's Trustees v Melville 1861 23D 450. In the first of these passages, at page 462, his Lordship stated:

 

What was it that he did or said? It is not enough to allege, - you said something which led us to believe so and so. That is not enough. If an action is laid upon misrepresentation, the misrepresentation itself must be set forth; and then, when the misrepresentation is set forth, we will see whether it is such a statement as goes at all to support the conclusions of the action, yea or nay; and the party who is said to have made the misrepresentation will have an opportunity of explaining it. The words may admit of other meanings. They may not be such as ought to have led the parties to draw any such inference; and no person accused of fraudulent misrepresentation can be bound to go to trial, unless he is told what the fraudulent misrepresentation is that he is said to have made. Nothing can be more settled than that.

 

And in the second of these passages, at page 463, his Lordship stated:

 

And always, when a case of fraud is alleged, general statements are not enough. It is said that fraud lurks in general statements, and general statements are not enough for the imputation of fraud when a party is called upon to defend himself. We must know precisely what the things are, and what the acts are which are alleged. What was it? Did he nod, or wink, or what was it that led them to believe? I think I have never known a case of fraud attempted to be sent to trial upon such a statement as this.

 

[19] I do not imagine that anyone today would take issue with these propositions. Certainly I do not. But they must be read in light of the pleadings which were under consideration in that particular case. These were narrated by Lord Jerviswoode in the Outer House at pages 455 to 459 of the report and by the Lord President at page 461. It can readily be seen that these pleadings were conspicuous for the absence within them of any positive and explicit averments of the fraudulent statements which were supposed to have been made by the defender, James Melville. By contrast, in the present case, as indicated, the pursuers have set out in averment in clear terms the three statements which they maintain were made by the defender.

 

[20] In their first ground of appeal the pursuers state two further reasons why they maintain that the sheriff erred in deciding that their case based on the fraudulent misrepresentations of the defender was irrelevant. In these reasons the pursuers challenge the sheriff's own reasoning as set out in the passage on page 15 of his judgement which I have quoted in paragraph [11] above. For present purposes I need say no more about the sheriff's reasoning since, as indicated, the defender's solicitor did not seek to support it.

 

[21] At the debate the defender's solicitor evidently advanced various arguments in support of his basic submission that the pursuers had not relevantly averred their losses. The sheriff dealt with these arguments at pages 15 and 16 of his judgement where he wrote:

 

(e) Losses.

The pleadings present numerous problems. There is little detail about why it was necessary to create a new water supply rather than augment the existing supply. Some of the cost involved in this would not be a cost shared equally with the other proprietor, and so there would need to be a clear statement of the expense incurred by the pursuers, and there is not. Furthermore, one would expect some more detail than there is about the precise times that the supply failed and the alternative measures taken by the pursuers in these circumstances, and why these were necessary. One wonders why, if there is a drought, it is necessary to go to Ireland to live with relatives. That is not said.

 

The pursuers also sue individually for vexation and inconvenience. On the basis of (Mack v Glasgow City Council, Court of Session, 30 March 2006, unreported), I accept that these heads are not a claim for personal injury and so are not time-barred. Nevertheless, the averments are contained in four lines and while it was submitted by counsel for the pursuers that that it enough, there was more said in the averments in Mack about inconvenience than is stated in the present case. In Mack, the pursuer averred that she had suffered inconvenience and damage. She had had to live in a house which was affected by severe water penetration, dampness and mould growth for a specified period. She had suffered inconvenience by living a house which was damp and smelly. She had been embarrassed by living in such conditions and was inconvenienced by having to complain to the local authority. The pursuers' pleadings here lack even that kind of detail.

 

I therefore sustain the defender's first and third pleas-in-law and, of consent the pursuers' tenth plea. It follows therefore that the action should be dismissed. In the circumstances, I do not consider it necessary to deal with the individual averments which were the subject of attack on relevancy and/or specification, except to say that, had I found the pursuers' case on fraudulent misrepresentation to be relevant, I would have excluded from probation the following, "The pursuers suffered vexation and inconvenience because of a lack of an adequate water supply, and the measures necessary to remedy the situation. The pursuers also suffered further vexation and inconvenience. When there was no water available, they were compelled to seek help from friends and relatives for washing facilities and had to reside with relatives in Ireland for a period." That would be on the basis that they do not give the defender fair notice of the claim.

 

[22] The pursuers' second ground of appeal is in the following terms:

 

The learned sheriff erred in deciding that the pursuers' averments failed to give fair notice of their claim for damages for vexation and inconvenience, and that he had he found that the pursuers had averred a relevant cased based upon fraudulent misrepresentation, he would have excluded from probation certain averments as referred to in his judgment at page 16. The averments concerned make a relatively simple claim for damages based on the obvious inconvenience caused by the lack of a domestic water supply in a dwelling house. The averments give sufficiently fair notice of this simple claim, and it is impossible to envisage how the defender would be taken by surprise at proof.

 

[23] In this context counsel for the pursuers referred to the passage in article 6 which reads: "The pursuers suffered vexation and inconvenience because of the lack of an adequate water supply, and the measures necessary to remedy the situation. The pursuers also suffered further vexation and inconvenience. When there was no water available they were compelled to seek help from friends and relatives for washing facilities, and had to reside with relatives in Ireland for a period". Counsel drew attention to what was said in the second ground of appeal and submitted that the pursuers' averments were sufficient to support their claim for damages on account of vexation and inconvenience. They had in the earlier part of article 6 specified the measures which had been necessary to obtain an alternative water supply, and had then averred that they had been compelled to seek help from friends and relative for washing facilities and had had to reside with relatives in Ireland for a period. In addition, the lack of a water supply in a residential property of itself inferred a degree of vexation and inconvenience and it was, said counsel, unnecessary for the pursuers to be any more specific in their averments in order to support this head of claim.

 

[24] In response, the defender's solicitor submitted that these averments were entirely inadequate to support this part of the pursuers' claims. The correct way to look at the matter was to pose the question whether, if this were an action which featured only craves 2 and 3, the pursuers' averments would be sufficiently specific to support these craves. The defender's solicitor submitted that they would not, for two reasons. In the first place it was not clear whether the pursuers' claims here would be restricted to the basic and obvious consequences of not having a water supply or whether they would go beyond this. The averment that they had suffered vexation and inconvenience because of the lack of an adequate water supply might mean merely that they had had to go next door once a week to collect some water from their neighbours or alternatively that they had been hospitalised due to dehydration. It was said that the pursuers had had to seek help from friends and relatives and go and reside with relatives in Ireland, but by themselves these averments were inadequate. It was not said when the water had not been available, how often and for how long. Nor was it said how often the pursuers had had to seek help from friends and relatives or what the nature of this help had been. Nor was it said why they had had to go to Ireland or for how long. In the absence of detailed averments about these matters the defender had not been given fair notice and it was impossible for her to assess whether or not there was any value in this branch of the pursuers' claims. And in the second place no attempt had been made by them to separate out the averments in support of crave 2 from those in support of crave 3. Thus it was not clear which of the pursuers had had to seek help from relatives and friends and which of them had been involved in the extra work of drilling a new well. The defender, said her solicitor, was entitled to know what had been the vexation and inconvenience endured by each of the pursuers in particular. This had not been specified and for this reason too the averments in support of this aspect of their claims were inadequate and lacking in specification.

 

[25] In my opinion the submissions for the pursuers on this aspect of the matter are again to be preferred. In article 5 they aver, inter alia, that the supply of water was at all material times variable and liable to failure after three weeks of dry weather, that it was inadequate for supplying water to two dwellinghouses, namely their own and the neighbour's house, and in particular that it failed on 23 June 2001 for twelve days and again on 9 August 2001 for several weeks. It is said too that at all material times during the summer months the well was capable of supplying up to a maximum of some 109 gallons per day when the minimum figure for the supply of the two dwellinghouses should have been at least 600 gallons per day. Then in article 6 the pursuers describe the steps which were taken to obtain an alternative water supply and they aver that this became available in or about August 2002. In other words, what they are saying is that, having taken entry to the property on 28 September 2000, they had to put up with a manifestly inadequate supply of water throughout the summer months of 2001 and the earlier summer months of 2002, and further that the water supply failed altogether on two separate occasions during the summer of 2001. In my opinion they do not need to say any more than this to support a claim by each of them for payment of damages to compensate them for the obvious vexation and inconvenience which they would have experienced as a result. Plainly, if at the proof they seek to lead evidence about specific aspects of this vexation and inconvenience which might have made them worse than they would in any event have been, then the defender would be entitled to object to the admissibility of such evidence. But so long as their claims are confined (as counsel for the pursuers confirmed that they were) to the obvious consequences of having an inadequate water supply during the summer months, and on two specific occasions no water supply at all, then I do not consider that the pursuers need to aver more than they have done in support of craves 2 and 3.

 

[26] In their third ground of appeal the pursuers complained that the sheriff had erred in commenting that their averments failed to give the precise times when the water supply failed. Understandably, in light of what is averred in article 5, this was not disputed by the defender's solicitor.

 

[27] The fourth ground of appeal is in the following terms:

 

The learned sheriff erred in commenting that the pursuers' averments failed to give sufficient reasons as to why it was necessary to develop a new supply rather than augment the existing supply. This raises a question of mitigation of loss and damage, an matter upon which the burden of proof lies with the defenders whether the claim be in contract or delict. Reference is made to W. McBryde, The Law of Contract in Scotland 2nd ed 2001, at para 22-39.

 

[28] In this context counsel for the pursuers drew attention to what the sheriff had said by about the necessity of providing an alternative supply of water, and he submitted that the point made by the sheriff clearly raised a question of mitigation of loss in respect of which the burden of proof lay on the defender.

 

[29] Referring to this ground of appeal, the defender's solicitor drew attention to what had been averred by the pursuers in the earlier part of article 6 in which they had explained the steps taken to provide an alternative supply by digging a well on the neighbouring property and the costs associated with this. The defender's solicitor pointed out that as a result the pursuers had obtained a new water supply and were apparently ignoring the existence of the original water supply. He made it plain that he did not maintain that there had been any element of betterment here or that the pursuers had failed to mitigate their loss. But he submitted that, whatever the pursuers' losses had been in this context, it was not these losses for which they were seeking compensation in the present case. The costs enumerated by them had been incurred, not by them alone, but by them and their neighbours. It thus appeared that they were trying to recover the costs of providing an alternative supply of water not only for their own property but also for their neighbour's property. In other words they were seeking to recover compensation for the loss sustained by their neighbours, and this they were not entitled to do. They had not stated how much of the total sum claimed, namely £12,044.87, had been incurred by them.

 

[30] In reply, counsel for the pursuers explained that their position in averment was that they had incurred a liability of £12,044.87 which had been the cost to them of obtaining an alternative water supply and this was the amount of the loss for which they were seeking compensation. Although it was not stated explicitly, it could be inferred from their pleadings that they had paid the whole of this sum.

 

[31] In my opinion the pursuers' averments in article 6 are relevant and sufficiently specific to support their claim for payment of the sum of £12,044.87 in terms of crave 1. It seems to me to be perfectly intelligible to say that all the individual costs which went to make up this sum and which are specified by the pursuers in article 6 could have been incurred by them alone in providing an alternative water supply to their own property with the possible exception of any additional cost incurred, for example, in laying a pipe from the new well to the house on the neighbouring property. Indeed it may be that the pursuers agreed with their neighbours that they would pay all these costs as the price of being permitted to draw water from a well on their neighbours' property. Be this as it may, the essential point here is that the pursuers aver that they assess their joint loss and damage suffered at this sum of £12,044.87, and it may be inferred from this that they are offering to prove that in order to get an adequate water supply to their own house they had to pay the whole of this sum and did so. If this was the position, then in my opinion they are in principle entitled to payment to them of this sum by the defender to compensate them for the loss sustained by them as a result of her fraudulent misrepresentations (if indeed these were made). I say "in principle" since I can understand that it may be said that, in paying the whole of this sum, the pursuers failed to mitigate their loss. But, if this was the case (and, as indicated, the defender's solicitor said it was not), the onus of averment and proof on this aspect of the matter would rest on the defender. Again, it may of course turn out at proof that the pursuers in fact only paid part of this sum and that the rest was paid by the neighbours. But so long as their position is, as it appears to be, that they paid the whole of this sum, then I do not consider that the averments in support of this branch of their claim can be said to be irrelevant or lacking in specification.

 

[32] In addition to the authorities already cited, I was also referred to McBryde on Contract (2nd Edn) at paragraphs 14-49 et seq and Shedden v Patrick 1852 14D 721.

 

[33] It was agreed that the matter of expenses should be reserved for a further hearing.


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