Cases - Debenham Tewson & Chinnocks v Rimington

Record details

Name

Debenham Tewson & Chinnocks v Rimington

Date

[1990]

Citation

2 EGLR 21

Keywords

Estate agency - commission

Summary

The plaintiffs were to be paid 1.5% commission for negotiations with developers for the sale of successive areas of land owned by the defendants, who were trustees of the Portsmouth Settled Estates. The plaintiffs were instructed to discuss values with the agents of the Grainger Trustees, as Grainger were interested in buying land from the defendants. There was a close relationship between Portsmouth and Grainger, so it was not a normal vendor purchaser case where each party was trying to negotiate the best price. The plaintiffs discussed values and comparables with Grainger's estate but were not authorised to put forward any offers. It was more in the nature of a preliminary exchange of views. They asked for instructions to agree a value, but Portsmouth never gave them any. Subsequently, Portsmouth and Grainger agreed a price themselves, the land was sold for approximately £32.5m and the plaintiffs claimed their 1.5% commission.

The Court of Appeal held that the defendants' instruction to the plaintiffs to discuss values with Grainger's agent was not an instruction to negotiate with developers for sale, in accordance with the agency agreement. In any event, what had taken place - a discussion as to price - even if it could be called a negotiation, did not amount to negotiations for the sale of land within the meaning of the agreement. The plaintiffs were awarded £15,000 on a quantum meruit basis for the work done in discussing prices and comparables with Grainger's agent, rather than the £564,450 they claimed in commission.