London & Regional Investments Ltd has failed in its challenge to the High Court dismissal of its claim for damages over a deal for the sale of a £190m property portfolio.
L&R, which had agreed to purchase the property portfolio of TBI plc, was seeking damages for breach of contract and loss of reasonable expectation in respect ofTBI’s decision to withdraw from a joint venture development scheme that L&R claimed was part of the deal.
L&R claimed that, under the terms of the acquisition, the parties agreed to use their best endeavours to enter into a joint to develop two areas of land, one in Belfast and the other in Cardiff, neither of which was in the portfolio.
Following a report that advised against development of the sites, TBI withdrew from the joint venture. L&R claimed that, in the circumstances, it was entitled to compensation for breach of the terms of the agreement.
In March 2001 Deputy Judge Peter Smith QC struck out the claim, granting summary judgment in favour of TBI. He said it was plain that 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.
That decision has been backed by the Court of Appeal.
London & Regional Investments Ltd v TBI plc and another Court of Appeal (Mummery, Dyson LJJ and Douglas Brown J) 22 March 2002.
PLS News 26/03/02
