Source: All England Reporter
Publisher Citation: [2012] All ER (D) 291 (Oct)
Neutral Citation: [2012] EWHC 2968 (Ch)
Court: Chancery Division
Judge:

Edward Bartley Jones QC sitting as a deputy judge of the High Court

Representation Stuart Hornett (instructed by Jeffrey Green Russell Limited) for KBL.
  David Head (instructed by Edwin Coe) for the defendants.
Judgment Dates: 26 October 2012

Catchwords

Contracts - Formation - Existence of contract - Joint venture for development of properties - Claimant company bringing claims against two defendants alleging breach of joint venture agreement in respect of two development sites - Whether binding agreements for joint venture - Whether defendants in breach of joint venture agreements - Whether equity arising in claimant's favour.

The Case

Contracts Formation. The Chancery Division held that the claimant company had failed to establish a cause of action against the second defendant for breach of a joint venture agreement in respect of two property developments. However, the court held, in respect of the first defendant company which had failed to follow through with the development of a site (the property), that a Pallant v Morgan trust arose and, accordingly, the court awarded the claimant 40% of the agreed actual net profit made by the first defendant on the re-sale of the property. Where property had been acquired for the joint benefit of A and B, there was no requirement, in respect of a Pallant v Morgan trust, that there had to be agreement or understanding that B would acquire a specific proprietorial interest.

Practice Areas

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