OUTER HOUSE, COURT OF SESSION
[2007] CSOH 13
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A597/06
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OPINION OF LORD BRODIE
in the cause
GREENWOODS LIMITED
Pursuers;
against
ANS HOMES LIMITED
Defenders:
ญญญญญญญญญญญญญญญญญ________________
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Pursuers: McNeill, Q.C.; Anderson Strathern
Defenders: Reid, Solicitor Advocate; Maclay Murray & Spens
23 January 2007
[1] The
pursuers in this action at the instance of Greenwoods Limited against
ANS Homes Limited enrolled a motion before calling in the following terms:
"On behalf of
the pursuers, in respect that the Summons in this case was signetted on
13 September 2006, that service required to be effected in England on the
defenders, that service was duly made at a place of business of the defenders,
namely 12 Parkgate Road, London SW11 4NN on 16 September
2006 by an English Process Server, Darren Adaway according to his
Affidavit of Service sworn on 18 September 2006, that the date of Citation
as shown on Form 13.7 which was served with the Summons incorrectly shows
the service date of 15 September 2006 which is a clerical error and
further that no witness accompanied Mr Adaway when service was effected as
that is not in accordance with the usual practice for serving documents in
England and Wales as referred to in the Form 16.3 duly signed by
Mr Adaway and dated 6 December 2006, to exercise the Court's
dispensing power in terms of Rule of Court 2.1(1) and relieve the pursuers
from the failure to comply with Rules 13.7 and 16.3(2) and allow the
Summons to call."
[2] Mr McNeill
appeared on behalf of the pursuers.
Mr Reid, Solicitor Advocate, was in attendance on behalf of the
defenders. As the Summons had not
called, there could be no question of the defenders having entered
appearance. There had in any event not
been service in the manner required by Rule of Court 16.3. Mr McNeill explained that parties had
agreed that if Mr Reid was allowed to be heard on behalf of the defenders,
that should not be regarded as a waiver of the defenders' right to contend that
there had not been a good service or otherwise to cure what was conceded by the
pursuers to have been a defect in service.
I accordingly authorised the appearance of Mr Reid on behalf of the
defenders with a view to him making oral submissions. That was the course of action followed by
Lord Macfadyen in Colley v Celtic Pacific Ship Management (Overseas)
Ltd 2002 SLT 320, a case to which my attention was drawn. I was grateful for the assistance afforded by
Mr Reid's careful submissions, as I was grateful to Mr McNeill for
his similarly careful presentation.
[3] Mr McNeill
began by advising me that the Summons in the action had been signetted on 13 September 2006. The pursuers' claim was for damages for breach
of contract and it was of importance that a relevant claim be made by the
pursuers in appropriate proceedings prior to 17 September 2006 because otherwise such obligation
as the defenders had to the pursuers would prescribe in terms of Section 6
of the Prescription and Limitation (Scotland)
Act 1973. The de quo was whether the pursuers should be held to have made such a
claim by virtue of service of the Summons effected on 16 September 2006. Rule of Court 13.7(1)(a) requires that
for a Summons to be executed, a copy of the Summons which has passed the signet
shall be served on the defenders with a citation in Form 13.7 attached to
it. In terms of Rule of
Court 16.3(1), a Summons may be executed by service by a Messenger at
Arms. In terms of Rule of Court 16.3(2),
such service shall be witnessed by one witness who shall sign the certificate
of service (which will state his name, occupation and address). In terms of Rule of Court 16.3(6), in
application of this Rule to service in a part of the United Kingdom furth of
Scotland, reference to a Messenger at Arms shall be construed as a reference to
a person entitled to serve Supreme Court writs in that part. Thus, for example, a Summons may be served in
England. In that event, it will have to be served by a
person entitled to serve Supreme Court writs in England. An English process server is such a
person. However, whatever may be the
practice followed in England for the service of English writs, a process server
serving a Summons which has passed the signet in Scotland will have to follow
the requirements for service set out in Rule of Court 16.3 and, in
particular, such service must be witnessed by one witness who shall sign the
certificate of service in terms of Form 16.3. This did not occur in the present case, hence
the need for the pursuers to be relieved from the consequences of this failure
to comply with the provisions of the Rules of Court, in terms of Rule of
Court 2.1.
[4] As
far as service was concerned, Mr McNeill saw there as having been two
failures: a failure of service being
witnessed by one witness who then signs the certificate of service,
Form 16.3; and a failure to make
any reference to a witness in the citation, Form 13.7. In addition to these failures,
Mr McNeill drew my attention to what he described as a clerical error in
the citation, Form 13.7. The
citation was dated 15 September
2006, whereas it was on 16 September
2006 that the process server had served the Summons at 12 Parkgate
Road, London.
[5] Having
identified the relevant failures and the error in the date of the citation,
Mr McNeill turned to consider Rule of Court 2.1, which is in the
following terms:
"2.1. - (1) The court may relieve a party from the
consequences of a failure to comply with a provision in these Rules shown to be
due to mistake, oversight or such other excusable cause on such conditions, if
any, as the court thinks fit.
(2) Where the court relieves a party from
the consequences of a failure to comply with a provision in these Rules under
paragraph (1), the court may pronounce such interlocutor as it thinks fit
to enable the cause to proceed as if the failure to comply with the provision
had not occurred."
Mr McNeill then referred to
the commentary on Rule 2.1 which appears in the Parliament House Book and
to the decision of Lord Macfadyen in Colley
v Celtic Pacific Ship Management
(Overseas) Ltd supra. In that case,
Lord Macfadyen had granted relief, in terms of Rule 2.1, in respect
of failure to serve a citation together with the Summons, as is required by
Rule 13.7(1)(a). Mr McNeill
took the decision as authority for the competency of his present application,
in that the power conferred by Rule 2.1 was sufficient to allow the court
to grant relief from the consequences of a failure to comply with the
requirements for good service which are imposed by the Rules.
[6] Mr McNeill
submitted that the failures here were excusable. It was unfortunate that the English process
server had not followed the requirements of the Scottish Rule, but this was not
a case of wilful non-observance. The
Summons had been duly signetted and a copy had been deposited by a person
having the requisite authority at a business address of the defenders. This had been done by way of a formal act,
albeit that the process server had taken it upon himself to act in accordance
with the procedure followed in his own jurisdiction rather than that provided
for in Scotland. The proper date had not been entered in the
citation but this was to be explained by the fact that he process server had
attempted service of the Summons at another address on the previous day. In the circumstances, the court should grant
relief. In answer to a question from me,
Mr McNeill said that, in considering whether relief should be granted in
terms of Rule of Court 2.1, no regard should be paid to the nature of the
action (here a dispute over the implementation of the terms of the commercial
lease). Mr McNeill had accepted
that some procedural provisions were of more importance than others. The provisions relating to service clearly
were important. The requirement of Rule
of Court 16.3(2) that there be a witness was both to provide proof and to
demonstrate the formality of the act in question. However, if what occurred was viewed from the
perspective of the recipient, what occurred might be seen to have been both
appropriate and normal. Rules of
Court 13 and 16 require there to be formality. Here there was formality. The failure related the way in which it was
carried out. This is not a case of
complete failure. There had been an
attempt to implement the provision, albeit a failure to implement the whole
provision. Accordingly, this was a case
where justice and equity pointed to the granting of relief.
[7] Mr Reid
invited me to refuse the application made on behalf of the pursuers. He pointed me to what he said was the real
issue. If the motion was granted and the
conceded irregularity was excused, the result would be that the pursuers will
have made a relevant claim in appropriate proceedings and, accordingly, avoided
prescription. In contrast, the motion is
not granted, no relevant claim will have been made and any obligation incumbent
on the defenders will have prescribed.
[8] Mr Reid
conceded that there was no question but that the power conferred by Rule of
Court 2.1 allowed relief to be given in the circumstances here, but the
question was whether the power should be exercised. In submitting that it should not,
Mr Reid put forward five reasons on which he relied. First, he pointed to what he described as the
heightened significance of the validity of citation. He referred in this respect to what appeared
in the Opinion of Lord Penrose in Blackfriars
(Scotland) Ltd v Shetland Salmon Co's Trustee 2002 SLT 315. Second, to the extent that the pursuers might
seek to excuse their failure by reference to being required to act under
pressure of time, this was pressure of their own making. Third, there was a equality as between the
parties as to the prejudice they might suffer.
Both were commercial companies.
One was at risk of being prejudiced by losing a claim. The other was at risk of being prejudiced by
having a claim made against it. Fourth,
while something had been made by Mr McNeill of the fact that the process
server had simply followed his usual practice, the court in fact had very
limited information as to the circumstances in which the process server had
acted. As Mr Reid put it, the court
did not have the full picture. For
example, the pursuers had been unable to provide a copy of the letter in terms
of which the Scottish Messengers at Arms had instructed the process
server. It might be the case that the
process server had received specific instructions with which he had failed to
comply. The court simply did not
know. The onus was on the pursuers to
persuade the court to exercise its power under Rule of Court 2.1 and
accordingly the onus was on the pursuers to explain the full picture. Fifth, if the application were refused, it is
not as if the pursuers would not necessarily have a remedy against some other
party.
[9] In
the course of his submissions, Mr McNeill did not seek to downplay the
importance of the form and of formality but, when taking me through the
commentary on Rule of Court 2.1 which is found in the Parliament House Book,
he emphasised the quotations from authority which referred to the need for the
court to do justice notwithstanding a failure to comply with procedural rules:
"... one finds the
meaning of the proviso by paying attention to the words 'not being wilful non-observance
of' the Rules. I think that the
dispensing power was meant to enable the Court to do justice" (Dalgety' Trs v Drummond 1938 SC 709 at 715);
and
"I doubt greatly
whether the Court ... is precluded by any Act of Sederunt from doing what it
thinks according to justice and equity in any individual case before it" (Boyd, Gilmour & Co v Glasgow & South Western Railway Co (1888)
16 R 104 at 109).
All courts, I imagine, seek to do
justice. The difficulty lies in knowing
how best to achieve this. Rules of Court
are intended to facilitate the doing of justice. In this regard I would respectfully associate
myself with what was said by Lord Carloway in Semple Cochrane Plc v Hughes 2001
SLT 1121 at 1124E:
"The rules of
court are devised to regulate litigation and, in that regard, to assist both
the parties and the court in arriving at a just conclusion in accordance with
the law as expeditiously as is reasonable in all the circumstances. As a general principle, parties must, of
course, abide by the rules and the sanctions which attach to any failure to do
so."
However, Rule of Court 2.1 is
a Rule like any other, to be applied according to its terms. Here, I would again respectfully associate
myself with what was said by Lord Carloway in Cochrane Plc v Hughes supra. The Rule is not qualified by any words such
as "exceptional or extraordinary circumstances", and there is no reason why
they should be implied. The Rule allows
the court to relieve a party of the consequences of a failure which is due to
mistake, oversight or other excusable cause.
Mr Reid, rightly in my opinion, made little of the error in the
date of the citation. Again rightly, he
attached more significance to the absence of a witness to service and the
consequential omission of any reference to a witness in the
Form 13.7. However, in my opinion,
the failure here is excusable. It was
not wilful. It has not resulted in any
procedural prejudice to the defenders, notwithstanding that I recognise that as
a result of my granting relief, the defenders will face a substantial claim to
which, as matters presently stand, they appear to have a good answer in the
form of a plea of prescription. I
consider there to be force in Mr Reid's observations that the court was
provided with very limited information as to the precise circumstances which
led the process server to assume that it was sufficient for him to follow his
usual practice when serving a writ. He
may have overlooked or even disobeyed express instructions from the Scottish
Messengers at Arms or the instructing solicitors may have failed to give
instructions which should have been given in the circumstances. I am not, however, satisfied that I require
more detailed information. A mistake was
made, it can be assumed that it was made by a professional person and no doubt
professional persons should not make mistakes within the field of their
particular competence. Acknowledging
that, as Mr McNeill submitted, this was not a case where nothing was
done. An authorised person was instructed
to serve the Summons. He took such steps
to do so as would have been sufficient in his own jurisdiction. What he did took the form of a formal
act. As a matter of fact, it put the
defenders on notice of the claim being made against them. It appears to me that even taking the most
adverse view of what occurred from the point of view of the pursuers, I cannot
regard their failures as inexcusable. I
shall accordingly grant the relief which is sought in the pursuers' motion.