Manchester and District Housing Association has won a court ruling holding the liquidators of a construction company to a deal, under which the company had agreed to sell property it was working on in Manchester to the association once the work was complete.
Fearnley Construction Ltd ran into financial problems and went into voluntary liquidation before the work on Stanlo House, 52 Granby Road, Manchester, was completed. However, Dunbar Bank plc took out a charge on the property although that charge ranked behind the housing association’s contract rights.
The association sought summary judgment for specific performance of the sale deal, despite the fact that the work was never completed by Fearnley, and Deputy Judge Mr K Garnett QC has now agreed that they are entitled to enforce the sale deal.
He has ordered specific performance of the sale agreement. Terms of the order are that the sale should be completed on payment to the liquidators of the undisputed balance of the purchase price, and payment into court by the association of the disputed balance of the purchase price.
The disputed balance centres on the sum the association claims should be deducted from the purchase price by way of damages, in respect of Fearnley’s failure to complete the building contract.
Manchester and District Housing Association v Fearnley Construction Ltd and Dunbar Bank plc Chancery Division (K Garnett QC, sitting as a deputy judge) 2 August 2000.
PLS News 3/8/00
