Rentokil Initial 1927 Plc v Goodman Derrick Llp
2014
CHANCERY DIVISION
United Kingdom
CORAM
- HIS HONOUR JUDGE DIGHT
Areas of Law
- Contract Law
- Tort Law
2014
CHANCERY DIVISION
United Kingdom
CORAM
AI Generated Summary
The case revolves around the claimant's assertion that the defendant solicitors were negligent in drafting a property sale contract, allowing the purchaser to back out under 'Unacceptable Planning Conditions.' The court held that the defendant was not negligent and provided sufficient advice. The court concluded that any losses suffered were not caused by the defendant's actions.
Judgment
His Honour Judge Dight :
In this case the defendant firm of solicitors was retained by the claimant to act on its behalf in the sale of commercial office premises known as Rentokil House, Garland Road, East Grinstead (“the Property”) to Taylor Woodrow Developments Limited, which subsequently became Taylor Wimpey Developments Limited (“Taylor Wimpey”). Taylor Wimpey’s purchase of the Property was to be subject to the grant of planning consent for development for residential purposes. Taylor Wimpey intended to develop the Property by demolishing the buildings on the site save for 218 London Road and to construct a number of flats. Planning consent was to be sought after exchange of contracts. Completion was to be dependent on the grant of planning consent with acceptable conditions. The claimant asserts that in the course of the retainer the defendant firm was negligent and that the claimant is entitled to damages for breach of the retainer and/or for professional negligence at common law. In essence the claimant asserts, first, that the defendant negligently drafted (or approved or agreed with the purchaser’s solicitors) the terms of the contract for sale (“the Contract”) of the Property in such a way that it enabled the purchaser to avoid completing the Contract at a time when the property market was falling and, secondly, that the defendant also failed to advise the claimant as to the proper meaning and effect of the terms of the Contract with the result that it entered into a contract which it would not otherwise have entered into. At the heart of the allegations is an assertion that the defendant failed properly to draft and advise on the definition of what are referred to as "Unacceptable Planning Conditions". The claimant also asserts that the defendant was negligent in relation to the drafting of the definition of “Costs” purportedly payable in respect of obligations to be performed under what became known as a “Planning Agreement” between the purchaser and the local planning authority pursuant to section 106 of the Town and Country Planning Act 1990 with the result that the definition was capable of reducing the purchase price when it ought not to have been.
The issues
The claimant alleges that as a result of the definition of “Unacceptable Planning Conditions” in the Contract Taylor Wimpey was able to argue that the planning conditions that were ultimately imposed (between exchange of contracts and the date of intended completion) were