Scottish Power Generation Ltd v. British Energy Generation (UK) Ltd & Anor [2002] ScotCS 9 (10th January, 2002)
OUTER HOUSE, COURT OF SESSION |
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CA77/14/01
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OPINION OF LORD MACFADYEN in the cause SCOTTISH POWER GENERATION LIMITED Pursuers; against (FIRST) BRITISH ENERGY GENERATION (UK) LIMITED, and (SECOND) SSE ENERGY SUPPLY LIMITED Defenders:
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Pursuers: Currie, Q.C. Keen, Q.C., Clive; Shepherd & Wedderburn
First Defenders: McNeill, Q.C., Howie, Q.C. and S. Smith; MacRoberts
4 January 2002
Introduction
The Motions
Competency
"In any cause in dependence before the Court, the Court may, on the motion of any party to the cause, make such order regarding the interim possession of any property to which the cause relates, or regarding the subject matter of the cause, as the Court may think fit."
The subsection is thus in two parts. An order may, in the discretion of the court, be made if it is (a) an order "regarding the interim possession of any property to which the cause relates", or (b) an order "regarding the subject matter of the cause". In this case SP seek to rely on both parts of the subsection.
"The words 'regarding the subject matter of the cause' are not attached to the preceding words 'the interim possession of any property', but form a separate branch of the provisions under which the court is empowered to make an order. 'The subject matter of the cause' is not restricted to a 'thing' but would cover the matters with which the cause is concerned."
Mr Currie also referred to Black Arrow Group plc v Park 1990 SLT 254, which was directly concerned with the second branch of section 47(2). There the Lord Ordinary (Lord Clyde) said (at 255J-K):
"It seems to me that the intention of the statute as indicated by its language is to confer a wide power. The scope of the order which may be made is such order as the court may think fit, which indicates a wide discretion on the nature of the order. Its substance is only defined by the requirement that it be one 'regarding the subject matter of the cause'. That phrase seems to me to take the scope of the order outside the precise limits of the remedies sought in the action and to extend the scope to the making of an order ancillary to the precise issue in the cause."
In the Inner House, however, the latter part of that observation was held to be flawed. In the Opinion of the Court delivered by Lord Justice-Clerk Ross it was said (at 256K-257A) that:
"The test to be applied is not whether the order sought is ancillary to the prime issue in the cause; the test is whether it is an order regarding the subject matter of the cause. Having regard to the words used in the subsection, we are of opinion that the proper approach is to ask - what is the subject matter of the cause? ... The Lord Ordinary nowhere states what he regards as the subject matter of the cause. Without determining what the subject matter of the cause is, one cannot conclude whether an order sought would be an order regarding the subject matter of the cause."
The court went on to identify the subject matter of the cause by reference to the conclusions and the averments of the parties, held that what was in issue was the existence of the contract, not its terms or content, and therefore concluded that the order sought was not within the scope of section 47(2).
Discretion
"If [SP] ... genuinely and bona fide disputes that any itemised sum ("the Disputed Sum") on any such invoice rendered pursuant to Clause 13.1 is payable, then, provided that on the due date for payment of the Disputed Sum [SP] ... shall have given notice to [BEG] of its intention to withhold the Withheld Sum (as hereinafter defined) stating in reasonable detail the bases upon which it so genuinely and bona fide disputes that the Disputed Sum is payable it shall be entitled to withhold, pending resolution of such dispute, a sum ("the Withheld Sum") not exceeding 50% of the Disputed Sum."
There was thus a contractual mechanism for dealing with a disputed invoice. That being so, it was not appropriate for the court to make an order in effect re-writing the provision which the parties had agreed to cover the situation in question.
Result