SHERIFFDOM OF GRAMPIAN HIGHLAND AND ISLANDS
AT ABERDEEN
A1831/05
JUDGEMENT
of
SHERIFF
PRINCIPAL SIR STEPHEN S T YOUNG Bt QC
in the cause
(FIRST) JOHN PAUL McNALLY and (SECOND)
DONNA LYNNE McNALLY
Pursuers and Appellants
against
JOSEPHINE EDITH WORRELL
Defender and Respondent
|
Act:
Mr Colin Mackenzie, advocate, instructed by Bruce MacDonald & Co, Aberdeen
Alt:
Mr W H Summers, solicitor, Davies Wood Summers, Aberdeen
Aberdeen: 5th October 2006
The
sheriff principal, having resumed consideration of the cause, allows the appeal
and recalls the interlocutor of the sheriff dated 12 July 2006; repels the
first and tenth pleas-in-law for the pursuers; repels the first and fourth
pleas-in-law for the defender and also her third plea-in-law to the extent that
it refers to "supposed fraudulent misrepresentations" by her; quoad ultra before answer allows parties a proof of their
respective averments on a date to be afterwards fixed by the sheriff; reserves
meantime all questions of expenses and appoints parties to be heard thereon in
chambers at Aberdeen Sheriff Court on Monday 23 October 2006 at 2.00
pm.
Note
[1] In this case the pursuers and appellants in
terms of crave 1 ask the court to grant decree against the defender and
respondent for payment to them of the sum of £12,044.87. In terms of craves 2 and 3 decree is sought
against the defender for payment to the first and second pursuers respectively
of the sum of £5,000 in each case.
[2] The background to the case is that by
missives dated 18 and 31 July and 23
August 2000 the defender agreed to sell and the pursuers agreed to
purchase the heritable property known as Moss End, Whitecross Steading, Chapel
of Garioch, Inverurie. In pursuance of
the missives the defender executed a disposition on 26 September 2000 which was delivered to the
pursuers on the agreed date of entry, 28
September 2000. The property
was not connected to the mains water system and the missives therefore
contained certain provisions to the effect that the pursuers as owners of the
property should have the right to use the water supply system from a well which
served the property and a neighbouring property known as "The Steading". In due course I shall refer in more detail to
the pursuers' averments, but in short they maintain that the water supply to
their property from the well was inadequate and that they suffered various
losses as a result.
[2] The action was raised in August 2005 and in
its original form was based exclusively on the claim that the defender had been
in breach of the contract constituted by the missives between the parties. But on 7
March 2006 the sheriff allowed a minute of amendment for the
pursuers to be received into process. In
terms of this minute of amendment they sought to add a second basis of claim,
namely that they had been induced to purchase the property as a result of
fraudulent misrepresentations made to them by the defender. After the usual amendment process, the
sheriff on 15 May 2006
opened the record and allowed it to be amended in terms of the pursuers' minute
of amendment.
[3] The defender tabled four pleas-in-law
directed to the relevancy and specification of the pursuers' averments and,
after a debate on 9 June 2006, the sheriff by interlocutor dated 12 July 2006
sustained two of these pleas-in-law, namely the first and third, and dismissed
the action. In short, he held the
pursuers' averments in support of both branches of their claim, namely breach
of contract and fraudulent misrepresentation, to be irrelevant and lacking in
specification. It is this interlocutor
which is the subject of the present appeal.
[4] In their original grounds of appeal the
pursuers sought to challenge the sheriff's decision to dismiss their claim in
both its branches. But these grounds of
appeal were subsequently deleted in their entirety and in their amended grounds
of appeal the pursuers made it plain that they sought to challenge only the
sheriff's decision to dismiss their claim to the extent that it was based upon
alleged fraudulent misrepresentations on the part of the defender. They no longer challenged his decision to
dismiss the claim to the extent that it was based upon breach of contract on
her part, and at the hearing of the appeal counsel for the pursuers confirmed
that they no longer maintained that they were entitled to payment of damages by
the defender on the basis of breach of contract on her part.
[5] At this point it will be convenient to set
out those parts of the pursuers' pleadings which were the focus of the discussion
at the hearing of the appeal. In article
2 of the condescendence the pursuers describe how they entered into missives
with the defender and received a disposition of the property on the agreed date
of entry, namely 28 September
2000. In article 3 they set
out in full certain terms of these missives which, while they are of assistance
in understanding the background to the case, no longer form the basis of their
claim. Accordingly I do not think it is
necessary to set them out in full here.
[6] In article 4 the pursuers aver, inter alia:
The property was not connected to the mains water
system. It was therefore incumbent upon
the defender in terms of the said term of the contract to make provision for a
good and sufficient supply of water supply for the property. The defender purported to do so by the
provision of a well on land owned by the defender adjoining the property, by
granting the right to use the well and pipes leading therefrom to the property. This water supply was shared with the
property known as ...... The Steading ...... which is a property with a dwellinghouse,
which was sold by the defender to third parties in August 1998 ..... Explained and averred that prior to the
conclusion of the missives relative to the property the defender made certain
representations to the pursuers concerning the quantity of water available from
the well serving the property. In or
about July 2000 the pursuers met with the defender on the property. The pursuers enquired of the defender about
the water supply for the property. The
first pursuer told the defender that he had never before inhabited a property
served by a private water supply and that both pursuers were concerned whether
the well would provide an adequate supply of water for the property. The defender pointed to the well which is
shown marked "Well" on "Plan Two" annexed to the disposition delivered to the
pursuers by the defender as hereinbefore condescended upon. The defender stated to the pursuers that
supply of water was more than adequate for the property and the neighbouring
property with which the supply was shared; there was a certificate with
Aberdeenshire Council to prove that the flow of water from the well equated to
18,000 gallons per day and that the said Council was satisfied that for its
intended purpose, namely the supply of the said two houses, the water supply
was adequate. This representation having
been made, and the pursuers having satisfied themselves that such a flow rate
was more than adequate, their concerns were satisfied ....... But for the said representations made by the
defender about the water supply the pursuers would not have concluded the
missives. Had the defender told the
pursuers that she did not know what quantity of water the well could supply,
they would not have concluded the missives .......
[7] In article 5 of the condescendence the
pursuers aver, inter alia:
......... the water supply provided by the defender was not
sufficient namely sufficient in quantity.
The well from which the supply came, serving the pursuers' dwellinghouse
and that of a neighbouring proprietor was not capable of providing a sufficient
supply of water in quantity ....... The
supply of water was at all material times variable and liable to failure after
three weeks of dry weather. It was inadequate
for supplying water to two dwellinghouses, in particular the house owned by the
pursuers which is a three bedroomed house and the house known as " The
Steading" which is a five bedroomed house.
The supply failed on 23 June
2001 for twelve days. It
failed again on 9 August 2001
for several weeks. At all material
times, during the summer months the well was capable of supplying up to a
maximum of 500 litres (109.985 gallons) per day ...... The well ....... should have been capable of
supplying at least 600 gallons (2727.654 litres) per day, this being a minimum
figure for the two dwellinghouses supplied by the well ....... Separatim,
the said loss, injury and damage was caused by the fraudulent
misrepresentations made by the defender.
The representations made by the defender to the pursuers concerning the
quantity of water available from the well serving the property were false and
fraudulent. The representation that the
well had a flow of 18,000 gallon per day was false. The 18,000 gallon per day
statistic applied, as the defender well knew, not to the well serving the
property but to (another) well ........ The
defender did not know the flow rate of the well serving the property and she
had no reason to believe that the 18,000 gallon per day statistic could be
applied in good faith to the well serving the property ......
[8] The pursuers' averments of loss are set out
in article 6 which, so far as material, is in the following terms:
As a result of the .......... fraudulent
misrepresentations made by the defender
the pursuers have suffered loss and damage.
Together with the neighbouring proprietors, Mr and Mrs A.S. Bunkell, who
also received water from the same well they engaged through solicitors in
abortive negotiations, in an endeavour to mitigate loss and damage, with
defender for the provision of' an alternative supply of water from a well or
wells on the defender's property. The
negotiations failed because of the unreasonableness of the defender who
demanded that the pursuers pay for the costs of provision of a new supply. The pursuers and the said neighbouring
proprietors therefore developed an alternative supply on the property of Mr and
Mrs Bunkell, incurring expense of provision of the well, costs of laying pipes
etc, and associated conveyancing costs relative to securing necessary servitude
rights for the pursuers and their successors in title. The cost of the services
of a hydrological surveyor to find a new and adequate water supply and provide
a report thereanent was £782. Excavation of a well, track for pipes, and hole
for a catchment tank cost £1,175. The supply and fitting of a borehole pump,
potable water tank, pump, pipes and associated equipment cost £4,682.38. The
transportation of rig equipment and associated labour cost £4,035.54. Conveyancing
costs included: £1,255.75 for investigation of the title of the said Mr and Mrs
Bunkell in relation to the grant by them of a servitude right; and preparation
of a deed of servitude and registration
of the same; and £114.20 for preparation of a plan and copies thereof depicting
the servitude right; The new supply
became available in or about August 2002. The pursuers suffered vexation and inconvenience because of
the lack of an adequate water supply, and the measures necessary to remedy the
situation. The pursuers also suffered further vexation and inconvenience. When there was no water available they
were compelled to seek help from friends and relatives for washing facilities,
and had to reside with relatives in Ireland for a period. In the circumstances the pursuers assess
their joint loss and damage suffered at £12,044.87, which is the sum first
craved and assess their separate losses for vexation and inconvenience at
£5,000 each, and these sums are those second and third craved.
[9] At the hearing of the appeal counsel for
the pursuers and the defender's solicitor accepted as a correct statement of
the law a passage from the judgement of Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC (Scotland) Limited (Court of
Session, 19 January 2001, unreported) which is quoted in paragraph [39] of the
judgement of Temporary Judge M G Thomson QC in Semple Cochrane plc v Clark 2003 SLT 532. At paragraph 14 of his judgement Lord
MacFadyen stated:
It seems to me that, in
identifying the tests which averments of fraudulent misrepresentation must
pass, it is worth making the distinction between relevancy and specification.
So far as relevancy is concerned, to make a case that a contract was induced by
fraudulent misrepresentation, the pursuer must in my opinion set out in
averment (i) the representation that was made, (ii) that the representation was
false, (iii) that the maker of the representation knew when he made it that it
was false (or acted recklessly, in that he did not know and was indifferent to whether
it was true or false), (iv) that the maker of the representation, if not the
defender, was one for whose actings the defender was in law answerable, and (v)
that the pursuer was induced by the representation to enter into the contract
in question.
[10] At
pages 7 and 8 of his judgement the sheriff summarised the submissions that were
made for the defender at the debate on the question whether the pursuers had
relevant averments in relation to the issue of fraudulent misrepresentation. In short, it appears from what the sheriff
says here that it was submitted that the pursuers had failed to set forth
averments which satisfied the test outlined in a passage in the judgement of
Lord MacFadyen in The Royal Bank of
Scotland plc v Holmes 1999 SLT 563 at page 569K/L where he stated: "It is
in my view essential for the party alleging fraud clearly and specifically to
identify the act or representation founded upon, the occasion on which the act
was committed or the representation made, and the circumstances relied on as
yielding the inference that that act or representation was fraudulent".
[11] At
page 15 of his judgement the sheriff explained why, in his opinion, the
pursuers' averments about fraud did not come up to the standard required. In short, he appears to have taken the view
that the third and fourth requirements set out by Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC
(Scotland) Limited had not been satisfied. Thus he stated, inter alia:
As is made clear
by the authorities cited and in particular in Semple Cochrane, the pursuers must aver (a) that a representation
was made; (b) that it was false; (c) that the defender knew that it was false
or that she acted recklessly in that she did not know, but was indifferent as
to the truth or otherwise of the representation; (d) that the maker of the
representation, if not the defender, was someone for whose actings she was in
law responsible, and (e) that the pursuers were induced to contract by these
representations. It is clear from the pursuers' averments that a representation
was made by the defender, and that the pursuers were induced by it to enter
into the contract. It is said that the
representation was false (albeit that it denied by the defender). However, it
is not stated that the defender either knew that it was false or ought to have
known, or that she did not care one way or the other. It also appears from the
pleadings that the defender was giving to the pursuers information which she
had from the local authority, but it is not said in the pleadings that she was,
in law, answerable for the local authority.
That might be a difficult thing to prove in any event. In these respects, the pursuers averments do not
meet the standard required, and are irrelevant.
[12] In their first ground of appeal as amended the pursuers drew
attention to the reasons given by the sheriff at page 15 of his judgement for
holding that the averments in support of their case of fraud were
irrelevant. The pursuers went on to
state that the solicitor for the defender did not submit to the sheriff that the pursuers' case based on the
fraudulent misrepresentations of the defender was irrelevant for the reasons
stated by the sheriff. After referring
to paragraph [39] of the judgement of Temporary Judge Thomson QC in Semple Cochrane plc v Clark the pursuers
stated:
Under reference
to the five enumerated matters, the defender's solicitor submitted that the
pursuers' averments failed to meet the first requirement because they set out
what the pursuers were led to believe as the result of the representation as
opposed to setting out the representation itself. He stated in argument that he was not submitting that the pursuers'
averments did not meet the second, third, fourth or fifth requirements.
[13] At the hearing of the appeal the defender's solicitor confirmed
that at the debate he had not addressed the sheriff in relation to the second,
third, fourth and fifth requirements set out by Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC
(Scotland) Limited and that he had not maintained, and did not now
maintain, that the pursuers' averments were not apt to satisfy these
requirements. He further confirmed that
the argument which he had made to the sheriff on this branch of the case had
been confined to the submission that the pursuers' averments did not satisfy
the first requirement set out by Lord MacFadyen.
[14] It will be noted that the first requirement as set out by the
sheriff at page 15 of his judgement was "(a) that a representation was
made". I did not understand it to be
disputed that this was not a correct statement of the law and that the first
requirement was instead that the pursuers should set out in averment the
representation that was made. Here
counsel for the pursuers accepted that it was not enough for them to aver what
they were induced to believe as the result of representations made to them by
the defender. On the contrary, what they
had to do was to set out in averment the representations that had been made,
and this they had done in the passage in article 4 of the condescendence where
they had stated: "The defender stated to the pursuers that supply of water was
more than adequate for the property and the neighbouring property with which
the supply was shared; there was a certificate with Aberdeenshire Council to
prove that the flow of water from the well equated to 18,000 gallons per day
and that the said Council was satisfied that for its intended purpose, namely
the supply of the said two houses, the water supply was adequate". (In passing, I should record that it was
accepted that at the debate before the sheriff the pursuers had been allowed to
amend the first of these sentences by substituting the word "stated" for the
word "represented").
[15] In response, the defender's solicitor submitted that the averments
in the passage relied upon by counsel were not averments of what the defender
had said but rather were averments of what the pursuers had inferred or taken
from what had been said by the defender.
In order to satisfy the first requirement set out by Lord MacFadyen it
was necessary that the exact words used by the defender should be set out in
averment. Since the pursuers had not
done this the first requirement had not been satisfied and it followed that
their averments in support of their case of fraud were irrelevant.
[16] In a brief reply, counsel for the pursuers suggested that the
defender's solicitor was looking for a higher standard of specification than
the law required. It was not necessary,
said counsel, for the defender's verbal representations to be set out in direct
speech. It was sufficient that the
substance of these representations should have been set forth in averment. Here counsel drew attention to the last part
of the passage in the judgement of Lord MacFadyen in Stewart Buchanan Gauges Limited v BEC (Scotland) Limited which had
been quoted by Temporary Judge Thomson QC in Semple Cochrane plc v Clark.
This passage reads:
So far as specification is
concerned, the authorities in my view justify the conclusion that when fraud is
alleged, a high standard of specification is required. It seems to me that it is appropriate to bear
in mind that the rule requiring pleadings to be specific is founded in
fairness. The party against whom any allegation is made is entitled to have
fair notice in the other party's pleadings of the substance of the
allegation. Where the allegation is of
fraud, the courts have applied that rule of fairness particularly strictly.
But, in my view, even in a case of fraud, a defender is not entitled to
complain of lack of specification if the pursuer's pleadings give him what in
the circumstances amounts to fair notice of the allegation. He cannot, through reliance on the
authorities about the high standard of specification required in cases of
fraud, demand that the pursuer's averments go into more detail than is
necessary to give fair notice of the case. Subject to that point, however, it
must in my view be borne in mind that the strict standard of specification will
be applied to each of the essential elements of the case identified
above."
[17] In my
opinion the submissions for the pursuers on this point are to be
preferred. Unless they had a tape
recorder with them or else had pen and paper to hand and an exceptionally good
memory (and, understandably, there was no suggestion that they should have had
any of these), and so were able to create a contemporaneous record, it seems to
me that it would be demanding far too high a standard of the pursuers to expect
that they should be able to set out in averment the exact words used by the
defender on the occasion in question.
In my opinion it is sufficient
that they should have given fair notice to the defender of the substance of
what they maintain was stated by her, and this they have done in the passage in
article 4 of the condescendence upon which counsel for the pursuers
relied. In essence they are saying that
the defender made three statements to them, namely (1) that the supply of water
was more than adequate for the property and the neighbouring property with
which the supply was shared, (2) that there was a certificate with
Aberdeenshire Council to prove that the flow of water from the well equated to
18,000 gallons per day, and (3) that the Council was satisfied that for its intended
purpose, the supply of the two houses, the water supply was adequate. In my opinion this gives the defender fair
notice of what she is supposed to have said and it is not necessary that the
pursuers should have gone further than this and stated the exact words which
were used by her at the time.
[18] For
the sake of completeness, I should mention that in the course of his
submissions the defender's solicitor founded strongly on two passages in the
judgement of the Lord President in Drummond's
Trustees v Melville 1861 23D 450. In
the first of these passages, at page 462, his Lordship stated:
What was it that he did or
said? It is not enough to allege, - you
said something which led us to believe so and so. That is not enough. If an action is laid upon misrepresentation,
the misrepresentation itself must be set forth; and then, when the
misrepresentation is set forth, we will see whether it is such a statement as
goes at all to support the conclusions of the action, yea or nay; and the party
who is said to have made the misrepresentation will have an opportunity of
explaining it. The words may admit of
other meanings. They may not be such as ought to have led the parties to draw
any such inference; and no person accused of fraudulent misrepresentation can
be bound to go to trial, unless he is told what the fraudulent
misrepresentation is that he is said to have made. Nothing can be more settled than that.
And in the second of these passages, at page 463, his
Lordship stated:
And always, when a case of
fraud is alleged, general statements are not enough. It is said that fraud lurks in general
statements, and general statements are not enough for the imputation of fraud
when a party is called upon to defend himself.
We must know precisely what the things are, and what the acts are which
are alleged. What was it? Did he nod, or wink, or what was it that led
them to believe? I think I have never
known a case of fraud attempted to be sent to trial upon such a statement as
this.
[19] I do
not imagine that anyone today would take issue with these propositions. Certainly I do not. But they must be read in light of the
pleadings which were under consideration in that particular case. These were narrated by Lord Jerviswoode in
the Outer House at pages 455 to 459 of the report and by the Lord President at
page 461. It can readily be seen that
these pleadings were conspicuous for the absence within them of any positive
and explicit averments of the fraudulent statements which were supposed to have
been made by the defender, James Melville.
By contrast, in the present case, as indicated, the pursuers have set
out in averment in clear terms the three statements which they maintain were
made by the defender.
[20] In
their first ground of appeal the pursuers state two further reasons why they
maintain that the sheriff erred in deciding that their case based on the
fraudulent misrepresentations of the defender was irrelevant. In these reasons the pursuers challenge the
sheriff's own reasoning as set out in the passage on page 15 of his judgement
which I have quoted in paragraph [11] above.
For present purposes I need say no more about the sheriff's reasoning
since, as indicated, the defender's solicitor did not seek to support it.
[21] At the
debate the defender's solicitor evidently advanced various arguments in support
of his basic submission that the pursuers had not relevantly averred their
losses. The sheriff dealt with these
arguments at pages 15 and 16 of his judgement where he wrote:
(e) Losses.
The pleadings
present numerous problems. There is little detail about why it was necessary to
create a new water supply rather than augment the existing supply. Some of the
cost involved in this would not be a cost shared equally with the other
proprietor, and so there would need to be a clear statement of the expense
incurred by the pursuers, and there is not. Furthermore, one would expect some
more detail than there is about the precise times that the supply failed and
the alternative measures taken by the pursuers in these circumstances, and why
these were necessary. One wonders why, if there is a drought, it is necessary
to go to Ireland to live with relatives. That is not said.
The pursuers
also sue individually for vexation and inconvenience. On the basis of (Mack v Glasgow City Council, Court of
Session, 30 March 2006, unreported), I accept that these heads are not a claim
for personal injury and so are not time-barred. Nevertheless, the averments are
contained in four lines and while it was submitted by counsel for the pursuers
that that it enough, there was more said in the averments in Mack about inconvenience than is stated
in the present case. In Mack, the
pursuer averred that she had suffered inconvenience and damage. She had had to
live in a house which was affected by severe water penetration, dampness and
mould growth for a specified period. She had suffered inconvenience by living a
house which was damp and smelly. She had been embarrassed by living in such
conditions and was inconvenienced by having to complain to the local authority.
The pursuers' pleadings here lack even that kind of detail.
I therefore
sustain the defender's first and third pleas-in-law and, of consent the
pursuers' tenth plea. It follows therefore that the action should be dismissed.
In the circumstances, I do not consider it necessary to deal with the
individual averments which were the subject of attack on relevancy and/or
specification, except to say that, had I found the pursuers' case on fraudulent
misrepresentation to be relevant, I would have excluded from probation the
following, "The pursuers suffered vexation and inconvenience because of a lack
of an adequate water supply, and the measures necessary to remedy the
situation. The pursuers also suffered further
vexation and inconvenience. When there
was no water available, they were compelled to seek help from friends and
relatives for washing facilities and had to reside with relatives in Ireland
for a period." That would be on the
basis that they do not give the defender fair notice of the claim.
[22] The pursuers' second ground of appeal is in the following terms:
The learned
sheriff erred in deciding that the pursuers' averments failed to give fair
notice of their claim for damages for vexation and inconvenience, and that he
had he found that the pursuers had averred a relevant cased based upon
fraudulent misrepresentation, he would have excluded from probation certain
averments as referred to in his judgment at page 16. The averments concerned make a relatively
simple claim for damages based on the obvious inconvenience caused by the lack
of a domestic water supply in a dwelling house.
The averments give sufficiently fair notice of this simple claim, and it
is impossible to envisage how the defender would be taken by surprise at proof.
[23] In this context counsel for the pursuers referred to the passage
in article 6 which reads: "The pursuers suffered vexation and inconvenience
because of the lack of an adequate water supply, and the measures necessary to
remedy the situation. The pursuers also
suffered further vexation and inconvenience.
When there was no water available they were compelled to seek help from
friends and relatives for washing facilities, and had to reside with relatives
in Ireland for a period". Counsel drew
attention to what was said in the second ground of appeal and submitted that
the pursuers' averments were sufficient to support their claim for damages on
account of vexation and inconvenience.
They had in the earlier part of article 6 specified the measures which
had been necessary to obtain an alternative water supply, and had then averred
that they had been compelled to seek help from friends and relative for washing
facilities and had had to reside with relatives in Ireland for a period. In addition, the lack of a water supply in a
residential property of itself inferred a degree of vexation and inconvenience
and it was, said counsel, unnecessary for the pursuers to be any more specific
in their averments in order to support this head of claim.
[24] In response, the defender's solicitor submitted that these
averments were entirely inadequate to support this part of the pursuers'
claims. The correct way to look at the
matter was to pose the question whether, if this were an action which featured
only craves 2 and 3, the pursuers' averments would be sufficiently specific to
support these craves. The defender's
solicitor submitted that they would not, for two reasons. In the first place it was not clear whether
the pursuers' claims here would be restricted to the basic and obvious
consequences of not having a water supply or whether they would go beyond
this. The averment that they had
suffered vexation and inconvenience because of the lack of an adequate water
supply might mean merely that they had had to go next door once a week to
collect some water from their neighbours or alternatively that they had been
hospitalised due to dehydration. It was
said that the pursuers had had to seek help from friends and relatives and go
and reside with relatives in Ireland, but by themselves these averments were
inadequate. It was not said when the
water had not been available, how often and for how long. Nor was it said how often the pursuers had
had to seek help from friends and relatives or what the nature of this help had
been. Nor was it said why they had had
to go to Ireland or for how long. In the
absence of detailed averments about these matters the defender had not been
given fair notice and it was impossible for her to assess whether or not there
was any value in this branch of the pursuers' claims. And in the second place no attempt had been
made by them to separate out the averments in support of crave 2 from those in
support of crave 3. Thus it was not
clear which of the pursuers had had to seek help from relatives and friends and
which of them had been involved in the extra work of drilling a new well. The defender, said her solicitor, was
entitled to know what had been the vexation and inconvenience endured by each
of the pursuers in particular. This had
not been specified and for this reason too the averments in support of this
aspect of their claims were inadequate and lacking in specification.
[25] In my opinion the submissions for the pursuers on this aspect of
the matter are again to be preferred. In
article 5 they aver, inter alia, that
the supply of water was at all material times variable and liable to failure
after three weeks of dry weather, that it was inadequate for supplying water to
two dwellinghouses, namely their own and the neighbour's house, and in
particular that it failed on 23 June 2001 for twelve days and again on 9 August
2001 for several weeks. It is said too
that at all material times during the summer months the well was capable of
supplying up to a maximum of some 109 gallons per day when the minimum figure
for the supply of the two dwellinghouses should have been at least 600 gallons
per day. Then in article 6 the pursuers
describe the steps which were taken to obtain an alternative water supply and
they aver that this became available in or about August 2002. In other words, what they are saying is that,
having taken entry to the property on 28 September 2000, they had to put up
with a manifestly inadequate supply of water throughout the summer months of
2001 and the earlier summer months of 2002, and further that the water supply
failed altogether on two separate occasions during the summer of 2001. In my opinion they do not need to say any more
than this to support a claim by each of them for payment of damages to
compensate them for the obvious vexation and inconvenience which they would
have experienced as a result. Plainly,
if at the proof they seek to lead evidence about specific aspects of this
vexation and inconvenience which might have made them worse than they would in
any event have been, then the defender would be entitled to object to the
admissibility of such evidence. But so
long as their claims are confined (as counsel for the pursuers confirmed that
they were) to the obvious consequences of having an inadequate water supply
during the summer months, and on two specific occasions no water supply at all,
then I do not consider that the pursuers need to aver more than they have done
in support of craves 2 and 3.
[26] In their third ground of appeal the pursuers complained that the
sheriff had erred in commenting that their averments failed to give the precise
times when the water supply failed.
Understandably, in light of what is averred in article 5, this was not
disputed by the defender's solicitor.
[27] The fourth ground of appeal is in the following terms:
The learned
sheriff erred in commenting that the pursuers' averments failed to give
sufficient reasons as to why it was necessary to develop a new supply rather
than augment the existing supply. This
raises a question of mitigation of loss and damage, an matter upon which the
burden of proof lies with the defenders whether the claim be in contract or
delict. Reference is made to W. McBryde,
The Law of Contract in Scotland 2nd ed
2001, at para 22-39.
[28] In this context counsel for the pursuers drew attention to what
the sheriff had said by about the necessity of providing an alternative supply
of water, and he submitted that the point made by the sheriff clearly raised a
question of mitigation of loss in respect of which the burden of proof lay on
the defender.
[29] Referring to this ground of appeal, the defender's solicitor drew
attention to what had been averred by the pursuers in the earlier part of article
6 in which they had explained the steps taken to provide an alternative supply
by digging a well on the neighbouring property and the costs associated with
this. The defender's solicitor pointed
out that as a result the pursuers had obtained a new water supply and were
apparently ignoring the existence of the original water supply. He made it plain that he did not maintain
that there had been any element of betterment here or that the pursuers had
failed to mitigate their loss. But he
submitted that, whatever the pursuers' losses had been in this context, it was
not these losses for which they were seeking compensation in the present
case. The costs enumerated by them had
been incurred, not by them alone, but by them and their neighbours. It thus appeared that they were trying to
recover the costs of providing an alternative supply of water not only for
their own property but also for their neighbour's property. In other words they were seeking to recover
compensation for the loss sustained by their neighbours, and this they were not
entitled to do. They had not stated how
much of the total sum claimed, namely £12,044.87, had been incurred by them.
[30] In reply, counsel for the pursuers explained that their position
in averment was that they had incurred a liability of £12,044.87 which had been
the cost to them of obtaining an alternative water supply and this was the
amount of the loss for which they were seeking compensation. Although it was not stated explicitly, it
could be inferred from their pleadings that they had paid the whole of this
sum.
[31] In my opinion the pursuers' averments in article 6 are relevant
and sufficiently specific to support their claim for payment of the sum of
£12,044.87 in terms of crave 1. It seems
to me to be perfectly intelligible to say that all the individual costs which
went to make up this sum and which are specified by the pursuers in article 6
could have been incurred by them alone in providing an alternative water supply
to their own property with the possible exception of any additional cost
incurred, for example, in laying a pipe from the new well to the house on the
neighbouring property. Indeed it may be
that the pursuers agreed with their neighbours that they would pay all these
costs as the price of being permitted to draw water from a well on their
neighbours' property. Be this as it may, the essential point here is that the
pursuers aver that they assess their joint loss and damage suffered at this sum
of £12,044.87, and it may be inferred from this that they are offering to prove
that in order to get an adequate water supply to their own house they had to
pay the whole of this sum and did so. If
this was the position, then in my opinion they are in principle entitled to
payment to them of this sum by the defender to compensate them for the loss
sustained by them as a result of her fraudulent misrepresentations (if indeed
these were made). I say "in principle"
since I can understand that it may be said that, in paying the whole of this
sum, the pursuers failed to mitigate their loss. But, if this was the case
(and, as indicated, the defender's solicitor said it was not), the onus of
averment and proof on this aspect of the matter would rest on the defender.
Again, it may of course turn out at proof that the pursuers in fact only paid
part of this sum and that the rest was paid by the neighbours. But so long as their position is, as it
appears to be, that they paid the whole of this sum, then I do not consider
that the averments in support of this branch of their claim can be said to be
irrelevant or lacking in specification.
[32] In addition to the authorities already cited, I was also referred
to McBryde on Contract (2nd Edn) at paragraphs 14-49
et seq and Shedden v Patrick 1852 14D 721.
[33] It was agreed that the matter of expenses should be reserved for a
further hearing.