London & Regional Investments Ltd (L&R) has failed in a High Court claim for damages over a deal for the sale of a £190m property portfolio.
L&R sought damages for breach of contract and loss of reasonable expectation in respect of a decision by TBI plc to withdraw from a joint venture development scheme.
L&R claimed that under the terms of the property acquisition, the parties agreed to use their best endeavours to enter into a joint venture to develop two areas of land, one in Belfast and the other in Cardiff, neither of which was in the property portfolio.
But, following a report that advised against development of the sites, TBI withdrew from the joint venture. In the circumstances, L&R claimed that it was entitled to compensation for breach of the terms of the agreement.
However, striking out the claim and granting summary judgment in favour of TBI, Deputy High Court Judge Peter Smith QC said that it was plain the parties had entered into an agreement that was intended to be non-binding and that even if it had been binding, he was satisfied that TBI had used its best endeavours to set up a joint venture.
The judge found that there was no evidence to show that L&R had suffered any detriment over the failure of the scheme.
London and Regional Investments Ltd v TBI plc and another Chancery Division (Peter Smith QC, sitting as a deputy judge of the High Court) 9 March 2001.
PLS News 21/3/00
