The High Court has determined the profit share that a developer should receive after winning a dispute with a
Norris J awarded Andrew Sutcliffe £25,000 as a “fair and reasonable” share from the joint venture company that developed the three-storey apartment block, a sum that is to be personally guaranteed by entrepreneur William Lloyd.
In August 2001, Lloyd was granted an option to purchase, for £120,000, a former petrol station site at
Lloyd enlisted the help of Sutcliffe to manage, design and construct the development in return for a profit share.
By the end of 2002, Sutcliffe had prepared plans for the residential project. However, in March 2003, their relationship broke down after planning permission had been granted but before construction had begun.
Sutcliffe sued Lloyd for a profit share from the development as had been agreed.
In December 2005, Norris J found, as a preliminary issue of liability, that Sutcliffe was entitled to a share of the profits, which was also upheld on appeal.
Yesterday, Norris J held that “the sensible course in this case is to assess in a very broad way the detriment to [Sutcliffe] (through the provision of his skills and the opportunity cost of his funding) and then to charge that as an expense in the company’s accounts”.
In 2005, the development, William Thomas House, won the Readers’ Choice Award, Best Warwickshire Development and Best UK Architecture awards at the Daily Mail’s UK Property Awards.
Sutcliffe v Lloyd and another Chancery Division (Norris J) 16 June 2008.
Simon Clegg (instructed by Coodes Solicitors, of Launceston and Walker Morris, of
