SECOND DIVISION, INNER HOUSE, COURT OF SESSION
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Lord Justice ClerkLord BrodieLord Marnoch
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[2010] CSIH 65F55/09
OPINION OF THE COURT
delivered by LORD MARNOCH
in the Reclaiming Motion
by
GEORGE STEEL
Pursuer and Reclaimer;
against
MARIA ANNE TORTOLANO or STEEL
Defender and Respondent:
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Defender and Respondent: Miss Wise, QC, Miss Innes; Drummond Miller
9 July 2010
[1] In this action of divorce under the second
conclusion of the summons the pursuer seeks an order for the transfer by the
defender to the pursuer of:
"(i) such right as she may have to payment by the partners of the firm of 'George Steel' of a sum arising under a partnership agreement dated 30 July 2001 on her retiral from said firm and
(ii) the right to payment in terms of the decree of this Court in her favour in the action Maria Anne Tortolano or Steel v George Steel and Robert Steel dated 16 March 2010 (other than for the expenses of that action); ...."
[2] We assume that by use of the word
"transfer" what is really intended is some form of assignation. In any event,
the third conclusion is thereafter expressed in the following terms:
"(3) For interdict and interdict ad interim of the defender
(i) from taking any steps to enforce payment of the sum referred to in conclusion 2 pending the determination of these proceedings; and
(ii) from taking any steps to do diligence on the basis of the decree of this court in her favour in the action Maria Anne Tortolano or Steel v George Steel and Robert Steel dated 16 March 2010 other than for the expenses of that action."
The temporary judge has refused interim interdict in terms of the third conclusion and his decision is the subject of the present reclaiming motion.
[3] The motion for interim interdict both
before us and before the temporary judge was advanced under two heads. First, (although
in the end this was only faintly insisted in) it was submitted that interim
interdict at common law was competent as a means of preserving what was
described as "the subject matter" of the second conclusion. That argument was
rejected by the temporary judge in the following terms:
"I was of the opinion that prima facie at common law it was not competent for the pursuer to seek to interdict the defender from exercising her right to enforce the decree in her favour, if so advised. To do so would be her absolute right and not the apprehended violation of any right of the pursuer. Furthermore, as the decree was a joint and several decree the pursuer had no possible basis for preventing the defender from enforcing the decree against the other debtor."
[4] In our opinion the temporary judge was well
founded in his reasoning. In particular, we agree that in general interdict
and interdict ad interim are intended as remedies against an apprehended
violation of a party's rights. It is true that in the past the court has
occasionally used interdict as a means of maintaining the status quo or
regulating interim possession. However, as is pointed out in Thomson
& Middleton's Manual of Court of Session Procedure, at p. 294,
that use has been largely if not entirely superseded by the provisions of what
was then section 6(7) of the Administration of Justice (Scotland) Act 1933
and what is now section 47(2) of the Court of Session Act 1988. Pease v
Pease 1967 SC 112 is possibly a more recent example of the exercise of the
power in question but we are clear, in any event, that it can now be invoked
only in exceptional circumstances. No such circumstances are present here and
we doubt, indeed, whether, even in former times, it would ever have been
thought appropriate to interdict simpliciter the timeous enforcement of
a valid decree of the court.
[5] The second ground advanced in argument
before us and before the temporary judge was that interim interdict was
competent under section 18(2) of the Family Law (Scotland) Act 1985. As to that, we agree
with the temporary judge that the enforcement of the decree would not, on the
face of it, constitute a "transaction" let alone one likely to defeat the
pursuer's claim for financial provision. In doing so, we are content to adopt
his reasoning in para [8] of his Note which is in the following terms:
"[8] I concluded that section 18 of the 1985 was of no assistance to the pursuer. That provision is designed to deal with avoidance transactions and I agree with counsel for the defender that the notion of giving away of property is at the heart of the provision. ... In my opinion any result achieved by the defender in the implementation of the decree in her favour would not constitute the kind of disposal of property that objectively would be described as the kind of anti-avoidance step envisaged by section 18 of the 1985 Act. Having regard to the legislative intention behind the anti-avoidance provision contained in section 18 of the 1985 Act I concluded that the transaction was some action that in fact or potentially reduced the estate of one spouse/partner to the potential detriment of the other. The implementation of the decree would have the opposite effect."
[6] Before leaving this part of the case it is,
however, necessary to address a more particular line of argument that does not
seem to have been before the temporary judge and which, at all events, was only
fully developed by Mrs Scott, QC in the course of the Reclaiming Motion.
That was to the effect that the claim for transfer of "the right to payment in
terms of the decree ... " constituted a specific claim for transfer of
"property" under section 8(1)(aa) of the 1985 Act with the result that any
interference with that particular claim could, after all, be struck at by
section 18(2). Leaving aside possible questions of relevancy, we consider that
the short answer to this is that the decree in question is indistinguishable
from the ius crediti underlying it and thus, in substance, and, as the
wording of the conclusion itself suggests, no more nor less than the equivalent
of cash. Moreover, Mrs Scott freely accepted that in the end of the day the
sum represented by the decree would have in some way to be divided between the
parties. In these circumstances we are of opinion that neither the decree nor
the right to payment under it falls to be regarded as "property" within the
meaning of section 8(1)(aa) of the Act.
[7] We should add that, before us, Mrs Scott
also sought to rely on section 14(2)(k) of the 1985 Act. However we agree
with counsel for the respondent that where the remedy of interdict is expressly
dealt with elsewhere in the Act it is quite impossible to imply from these
provisions some further and broader application of that remedy.
[8] For all the foregoing reasons we consider,
in agreement with the temporary judge, that the motion for interim
interdict is incompetent.
[9] Since the matter was touched on in argument
it is right also to mention that we would, in any event, have considered the
balance of convenience to favour the defender.
[10] It is plain that the underlying strategy
behind the pursuer's claim is to secure a financial outcome in the present
action that would enable the pursuer, the pursuer's father and the pursuer's
son to continue a farming partnership. To the extent that the claim is pressed
in furtherance of third party interests it is not, in our view, relevant to
section 18. Furthermore, the farm land is held in trust for the
partnership by the pursuer; the farming enterprise includes a tenanted farm
nearby; and the pursuer and his partners intend to dispose of a substantial
part of the farm for development. In all these circumstances we are not
prepared to regard it as inevitable that enforcement of the decree would lead either
to the sequestration of the pursuer or to the termination of the farming
enterprise, as was urged on us by Mrs Scott.
[11] In the overall result this reclaiming motion
is refused.