Cases - Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd
Record details
- Name
- Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd
- Date
- [1994]
- Citation
- 1 AC 85
- Legislation
- Keywords
- Breach of contract
- Summary
-
A company called Stock Conversion was the lessee of part of a building in Jermyn Street, London. In June 1979 it entered into the standard form of employer/subcontractor agreement with Lenesta Sludge as prospective subcontractors for the removal of asbestos from a building. The works were carried out and practical completion was certified in March 1980. Thereafter, more asbestos was found and other contractors were engaged to remove it.
By 2 assignments dated April 1985 and December 1986, Stock Conversion assigned its proprietary interests in the building to the claimants.
In July 1985, Stock Conversion issued a writ against Lenesta Sludge, claiming damages for breach of contract. In July 1987 Linden Gardens were substituted for Stock Conversion in the action.
The principal issue was whether an original contracting party, or his assignee, could recover substantial damages for breach of contract, when the original party's loss had subsequently been made good to him by somebody other than the defendant.
The House of Lords held that Stock Conversion acquired a right to substantial damages for breaches of contract. It did not lose it when it disposed of its interest in the building for its sound market value in December 1986. After the assignment in January 1987, Linden Gardens as assignees became entitled to enforce Stock Conversion's claim.