| HOUSE OF LORDS | SESSION 2007–08 [2008] UKHL 55 |
on appeal from: [2006]EWCA Civ 1139
OPINIONS
OF THE LORDS OF APPEAL
FOR JUDGMENT IN THE CAUSE
Yeoman’s Row Management Limited (Appellants) and another v Cobbe (Respondent)
Appellate Committee
Lord Hoffmann
Lord Scott of Foscote
Lord Walker of Gestingthorpe
Lord Brown of Eaton-under-Heywood
Lord Mance
Counsel
Appellants: Respondent:
Nicholas Dowding QC Thomas Ivory QC Timothy Morshead Myriam Stacey
(Instructed by DLA Piper UK LLP) (Instructed by Bird & Bird)
Hearing dates:
4 and 5 JUNE 2008
ON
WEDNESDAY 30 JULY 2008
HOUSE OF LORDS
OPINIONS OF THE LORDS OF APPEAL FOR JUDGMENT
IN THE CAUSE
Yeoman’s Row Management Limited (Appellants) and another v
Cobbe (Respondent)
[2008] UKHL 55
LORD HOFFMANN
My Lords,
1. I have had the advantage of reading in draft the speech of my
noble and learned friend Lord Scott of Foscote. For the reasons he
gives, with which I agree, I too would allow this appeal.
LORD SCOTT OF FOSCOTE
My Lords,
Introduction
2. The essence of the problem to be resolved in this case can be quite shortly stated. A is the owner of land with potential for residential development and enters into negotiations with B for the sale of the land to B. They reach an oral “agreement in principle” on the core terms of the sale but no written contract, or even a draft contract for discussion, is produced. There remain some terms still to be agreed. The structure of the agreement in principle that A and B have reached is that B, at his own expense, will make and prosecute an application for the desired residential development and that, if the desired planning permission is obtained, A will sell the land to B, or more probably to a company nominated by B, for an agreed up-front price, £x. B will then, again at his own expense, develop the land in accordance with the planning permission, sell off the residential units, and, when the gross proceeds of sale received by B equals £2x, any further gross proceeds of sale will be divided equally between A and B. Pursuant to this agreement in principle B makes and prosecutes an application for planning permission for the residential development that A and he have agreed upon. B is encouraged by A to do so. In doing so B spends a considerable sum of money as well, of course, as a considerable amount of time. The application is successful and the desired planning permission is obtained. A then seeks to re-negotiate the core financial terms of the sale, asking, in particular, for a substantial increase in the sum of money that would represent £x. B is unwilling to commit himself to the proposed new financial terms and A is unwilling to proceed on the basis of the originally agreed financial terms. So B commences legal proceedings. The question for your Lordships is what relief, in the circumstances described, B should be granted, for, I believe, none of your…
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- Case
- [2008] UKHL 55
- Decision Date
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