Six figure settlement in favour of Bradley Haynes Law clients

CASE STUDY

Neil Bowyer

Six figure settlement in favour of Bradley Haynes Law clients after six-year legal battle.

SIX FIGURE SETTLEMENT IN FAVOUR OF BRADLEY HAYNES LAW CLIENTS AFTER SIX-YEAR LEGAL BATTLE.

NEIL BOWYER

LITIGATION CASE STUDY

Neil Bowyer of the firm’s Dispute Resolution Team has shown that tenacity and hard work can pay off in the most difficult of circumstances, with a favourable court outcome in March 2024 for his client in a long-running property development dispute

Neil says:

“This was one of the first cases I picked up when I joined Bradley Haynes in 2018 and I am delighted with our client’s success The clients have fought hard for this outcome over the last six years, and they can now look forward to the future.”

The Dispute

The dispute arose out of a breakdown in the relationship between our client and their joint venture partner in relation to a property development. The parties had agreed that our client would construct several properties and renovate another, with the other party providing some of the initial investment. The properties were to be sold, with each party recovering their initial investment (and build costs in the case of our client) and equally dividing any remaining sale proceeds. Unfortunately, the agreement between the parties was an informal one and was not properly documented, based largely on trust and a very short joint venture agreement.

When the relationship deteriorated, the other party claimed ownership of the finished properties and

challenged our client’s entitlement to receive any money from the project, despite them having invested a large sum of money and several years of labour into the build

The lack of an adequately drafted joint venture agreement meant that our client’s recovery was not straightforward Neil Bowyer explains:

“In the absence of a clear written agreement, our client had to instead satisfy the court that a constructive trust had arisen, by evidencing that they had spent time and money in reliance on promises made by the other side, so that although the other party legally owned the properties, our client had a beneficial interest in the properties and therefore an entitlement to share in their increased value as well as claw back the money our client had spent on improving those properties

An added complication was the somewhat sparse nature of our client’s evidence, they having retained receipts for building materials bought for the project, but not having kept any separate financial or bank accounts for the joint venture.”

The Outcome

After a three-day court hearing, the judge found in favour of Bradley Haynes’ client He was satisfied that a constructive trust did exist between the parties and ruled that our client was entitled to the recovery of their initial investment and build costs as well as an equal share of any remaining sale proceeds The total sum recovered was in excess of £300,000

Analysis and Key Takeaways

The origin of the dispute between the parties in this case was the informal nature of the agreement The parties were known to one another, and, at the point of contracting, they appeared to have a mutual understanding as to how the agreement would develop over time and what each of the parties could expect out of it.

Unfortunately, as time when on, each party developed different ideas as to what was originally agreed and that, along with the lack of record keeping, led to a breakdown in trust.

There is, of course, nothing wrong with friends and acquaintances going into business with one another but this case illustrates what can happen in the absence of a written contract, when trust breaks down and things go wrong

Court proceedings are time consuming and expensive and a well drafted contract which clearly sets out expectations can avoid this, by clearly setting out the expectations on each party, ensuring that there is no confusion over who does what, who gets what, or at the very least by referring any disagreements to mediation or arbitration instead of court.

The initial outlay for such a document is a lot less than the cost to all parties of a joint project going south, and the existence of a clear written contract along with well-kept records can often preserve a commercial relationship even after a disagreement

How we can help?

Bradley Haynes Law prides itself on its collaborative and holistic approach to providing legal services to its clients. The firm’s teams collaborate closely when advising clients, with our lawyers working together across specialisms to provide the best outcomes for our clients. Our clients are valued and have a single relationship manager at the firm, whilst also receiving wraparound support from other specialists at the firm as their legal needs change and evolve.

Whether you are a private individual or business, if you need legal support concerning either a transactional or contentious matter, get in touch with Bradley Haynes Law today and find out how we can help.