Dany Lions Ltd v Bristol Cars Ltd
2014
QUEEN’S BENCH DIVISION
United Kingdom
CORAM
- HIS HONOUR JUDGE SEYMOUR QC
Areas of Law
- Contract Law
- Civil Procedure
2014
QUEEN’S BENCH DIVISION
United Kingdom
CORAM
AI Generated Summary
In this case, Dany Lions Limited and Bristol Cars Limited submitted cross-applications regarding a breach of contract for repair services on a Bristol car. The judgment initially favored Dany Lions Limited, awarding £124,173.37. Subsequent negotiations led to a Consent Order but disagreements persisted regarding enforcement. The court ultimately directed payment to Dany Lions Limited but deferred action until the Court of Appeal decided on the stay request.
Judgment
Mrs Justice Andrews:
Ever since he first saw one at the age of eighteen, it has been Mr Andrew Olins’ dream to own a Bristol 405D drophead coupé. However, only around 43 of these classic cars were ever made, and few of those have survived. Thus when, in February 2011, Mr Olins discovered that the manufacturer, the original Bristol Cars Ltd, (“Bristol Cars”) was offering for sale, as a restoration project, a 1955 Bristol 405 four-door saloon which could be converted into a 405D, he felt he had to have it. By then, Mr Olins was an experienced commercial litigation partner in IBB Solicitors, the firm which represents the Claimant in this action.
In 2008 Mr Olins had established a family settlement whose assets are held by the Claimant (“DLL”). Mr Olins and his wife are the trustees of the settlement and, in that capacity, the shareholders and directors of DLL. DLL’s assets include four unencumbered flats, whose rental income of around £4,000 per month is used to pay the interest on loans made by the trust to DLL. Whilst Mr Olins was negotiating with Bristol Cars, that company went into administration. With the sanction of the administrators, Mr Olins procured DLL to purchase the car for £20,000 from Bristol Cars, on the express understanding that it would then be restored and converted into a 405D.
Mr Olins subsequently negotiated the scope of the works and the terms on which they would be carried out with personnel from Bristol Cars, chiefly a Mr Antony Steevenson, though he also had some discussions with the former CEO, Mr Toby Silverton. He intended at that time that the manual transmission would be converted to automatic, and was led to believe that this would be no problem. As might be expected, Mr Olins was careful to document the substance of these discussions, either by taking contemporaneous notes or by confirming their contents in an email sent shortly afterwards.
It was anticipated by both parties that when the administrators put the business up for sale, the old management would make a successful bid for it. However, when the time came, the Frazer-Nash group outbid them, and gained control of the “phoenix” company taking over the business, the present Defendant (“BCL”). Mr Steevenson reassured Mr Olins that despite this, it was “business as usual,” and that he and Mr Silverton were being kept on. He continued to negotiate with Mr Olins, now on behalf of BCL. Mr Olins insisted that there be a fixed price for the works, and that was wh