Persimmon must pay £4.1m to its partner on a multi-million pound
Following a nine-day hearing, Briggs J found in favour of developer Chartbrook’s claim that a profit-share agreement on the Centre Square scheme in Hardwicks Way, Wandsworth, London SW18, meant that it should have been paid £4.6m.
The housebuilder argued that Chartbrook was entitled to only £721,000 under the agreement, but that if it were entitled to more, it would be as a result of a mistake in the original clause, which should be rectified.
It sought rectification because it alleged that the developer’s directors, Stephen Vantreen and Bob Reeve, knew about the mistake at the time but kept silent.
Ordering Persimmon to pay £3.5m together with interest of £600,000 within 14 days, Briggs J said that the “ordinary meaning” of the agreement pointed to Chartbrook’s rather than Persimmon’s construction.
Refusing to rectify the agreement in favour of Persimmon, he found that Reeve and Vantreen were not “the rogues who they would have to be if the necessary factual basis for Persimmon’s rectification case were to be accepted”.
Bob Reeve said: “We are disappointed that the case has had to go to court, but we are glad to see that it has been resolved 100% in our favour and we have been entirely vindicated.”
A spokesperson for Persimmon said; “Persimmon has noted the High Court ruling about this commercial dispute and is considering its options with its legal advisers.”
Persimmon teamed up with Chartbrook in 2001 to develop and sell 100 flats on the former industrial site. In return for supplying the site, Chartbrook agreed that it would receive a share of the sale proceeds from the development once a predetermined trigger amount had been reached.
Chartbrook Ltd v Persimmon Homes Ltd and another Chancery Division (Briggs J) 2 March 2007.
Robert Miles QC and Timothy Morshead (instructed by Herbert Smith) appeared for the claimant; Christopher
