James Buchanan & Company v Stewart Cameron (Drymen) Ltd
| Jurisdiction | Scotland |
| Judgment Date | 04 July 1973 |
| Docket Number | No. 23. |
| Date | 04 July 1973 |
| Court | Court of Session (Outer House) |
OUTER HOUSE,
Lord Maxwell.
InterestBreach of contractDamagesLoss of assetPower of court to award interest on damages from date when right of action aroseExercise of powerInterest on Damages (Scotland) Act, 1958 (6 and 7 Eliz. II, cap. 61), sec. 1 (1)Interest on Damages (Scotland) Act, 1971 (cap. 31), sec. 1 (1).
Sec. 1 (1) of the Interest on Damages (Scotland) Act, 1958, as substituted by the Interest on Damages (Scotland) Act, 1971, provides that "where the court pronounces an interlocutor decerning for payment by any person of a sum of money as damages, the interlocutor may include decree for payment by that person of interest, at such rate or rates as may be specified in the interlocutor, on the whole or any part of that sum for the whole or any part of the period between the date when the right of action arose and the date of the interlocutor."
Whisky and advertising material belonging to the pursuers was lost while being carried by the defenders. The pursuers sued the defenders for the value of the goods lost on the basis of a condition of carriage in terms of which the carrier was to be liable for loss of goods occasioned during transit. Parties were in agreement that the Court should grant decree for payment of the principal sum; and that, within the meaning of sec. 1 (1), "the date when the right of action arose" was not later than 1st January 1971. It was not disputed that the principal sum was "damages." The pursuers sought an award of interest on the principal sum from 1st January 1971.
Held by Lord Maxwell (Ordinary) (1) that in cases not concerned with personal injury the Court had power by virtue of the substituted provisions to award interest on damages as from a date not earlier than that on which the right of action arose: (2) that the mere fact that a right of action arose on a particular date did not of itself justify an award of interest from that date: and (3) that the circumstances of the case did not provide a ground for awarding interest from 1st January 1971.
James Buchanan & Company Limited raised an action against Stewart Cameron (Drymen) Limited for payment of the sum of 9,900.60 with interest thereon at the rate of seven per centum per annum from 2nd July 1970.
The pursuers averred that a contract for the carriage by the defenders of a certain number of cases of whisky and cases of advertising material belonging to the pursuers was made between the pursuers and the defenders on 2nd July 1970; that on or about 13th July 1970 while the defenders were executing the contract for the pursuers, the lorry containing the entire consignment was stolen; and that the consignment had not been recovered and was a total loss. They also averred that in terms of the conditions of carriage it was provided, inter alia, that "the carrier shall be liable for any loss or misdelivery of or damage to goods occasioned during transit"; and that accordingly the defenders were liable to the pursuers in respect of the total value of the goods, which was averred to be 9,900.60.
The pursuers pleaded:"(1) The defenders being liable in terms of said condition II of the contract of carriage between the parties to reimburse the pursuers in respect of the loss of said goods as condescended upon, decree should be pronounced as concluded for. (2) The sum sued for being the total value of the said goods lost in the circumstances condescended upon, decree should be pronounced as concluded for."
The defenders pleaded:"(1) The defenders not being liable in terms of said condition II of the contract of carriage between the parties to reimburse the pursuers in respect of the loss of said goods decree therefor should not be pronounced as concluded for. (2) The sum sued for being excessive decree therefor should not be pronounced as concluded for."
The parties reached agreement that the Court should pronounce decree for payment of the principal sum of 9,900.60. The pursuers moved the Court to grant decree also for interest upon the principal sum from 1st January 1971 at the rate of seven per centum per annum. It was not disputed that the principal sum was "damages" within the meaning of section (1) of 1958 Act, as substituted. Parties were agreed that "the date when the right of action arose was not later than 1st January 1971 and that the appropriate rate for interest was sevenper centum per annum.
On 4th May 1973 the Lord Ordinary (Maxwell) decerned for payment by the defenders to the pursuers of the principal sum of 9,900.60...
To continue reading
Request your trial
-
Ronald Evan Wilson V. Dunbar Bank Plc
...well have arisen long before the pursuer has cited the defender in the action of damages. I agree with Lord Maxwell in Buchanan v Cameron 1973 S.C. 285 that the mere fact that a right of action arose on a particular date does not per se justify an award of interest from that date, but in my......
-
JM v Fife Council
...1986 SLT 207 Buchan v J Marr (Aberdeen) LtdUNK 1987 SLT 521; 1987 SCLR 96 Buchanan (James) & Co Ltd v Stewart Cameron (Drymen) LtdSC 1973 SC 285; 1973 SLT (Notes) 78 Eagle v Chambers (No 2)UNKWLRUNK [2004] EWCA Civ 1033; [2004] 1 WLR 3081; [2005] 1 All ER 136 G v G (Minors: Custody Appeal)W......
-
Farstad Supply As V. Enviroco Limited
...to interest on damages under the 1958 Act: Macrae v Reed and Mallik Ltd 1961 SC 68, James Buchanan & Co Ltd v Stewart Cameron (Drymen) Ltd 1973 SC 285, Wilson v Dunbar Bank plc 2008 SC 457. Once a pursuer had incurred loss by paying for the repairs he was deprived of money which he could ha......
-
Jm V. Fife Council
...in the interest awarded (Nacap Limited v Moffat Plant Limited 1986 S.L.T. 326). Reference was also made to Buchanan v Cameron 1973 S.C. 285. The exercise of the discretion in respect of interest required a selective and discriminating approach (Macrae v Reed and Mallik Limited). That approa......