Inner House case relating to the sale of a house and garden in Alloway.  The seller, Mr McSorley also owned a small additional plot of land nearby, which was not part of the sale agreement.  However, the disposition mistakenly included the extra plot of land with neither solicitor noticing the error. A year later, the Drennans (the purchasers) sold on the entire estate to a third party, who asserted ownership of the additional plot.

Mr McSorley claimed damages from the Drennans on the basis that they knowingly sold property not belonging to them and that, as a third party had acquired the land in good faith, reduction of the disposition and rectification of the Land Register were not available. The sheriff and temporary sheriff principal accepted this argument and allowed a proof on the level of damages. However, on appeal, the Inner House recalled the sheriff court decisions and dismissed the action finding that a remedy of damages would be available where there was a breach of contract or breach of a delictual obligation. However, Mr McSorley’s pleadings had not contained arguments to that effect.

The Inner House also rejected the notion that purchasers like the Drennans must be deemed to be aware of the technical details of dispositions noting that, in any case dependent on allegations of deliberate and dishonest wrongdoing, it was essential for a pursuer to make specific and pointed arguments in that regard.

It was noted briefly that Mr McSorley may yet be able to pursue a remedy based on reduction of the deeds despite the third party purchase or that remedies based in unjustified enrichment or delict may also be available to him.

The full judgement of the Scottish courts is available here.

All of our property and conveyancing case summaries are contained in the LKS Property and Conveyancing Casebook here.