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Scottish Court of Session Decisions


You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Greenwoods Ltd v ANS Homes Ltd [2007] ScotCS CSOH_13 (23 January 2007)
URL: http://www.bailii.org/scot/cases/ScotCS/2007/CSOH_13.html
Cite as: [2007] CSOH 13, [2007] ScotCS CSOH_13

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OUTER HOUSE, COURT OF SESSION

 

[2007] CSOH 13

 

A597/06

 

 

OPINION OF LORD BRODIE

 

in the cause

 

GREENWOODS LIMITED

 

Pursuers;

 

against

 

ANS HOMES LIMITED

 

Defenders:

 

 

ญญญญญญญญญญญญญญญญญ________________

 

 

Pursuers: McNeill, Q.C.; Anderson Strathern

Defenders: Reid, Solicitor Advocate; Maclay Murray & Spens

 

23 January 2007

 

[1] The pursuers in this action at the instance of Greenwoods Limited against ANS Homes Limited enrolled a motion before calling in the following terms:

"On behalf of the pursuers, in respect that the Summons in this case was signetted on 13 September 2006, that service required to be effected in England on the defenders, that service was duly made at a place of business of the defenders, namely 12 Parkgate Road, London SW11 4NN on 16 September 2006 by an English Process Server, Darren Adaway according to his Affidavit of Service sworn on 18 September 2006, that the date of Citation as shown on Form 13.7 which was served with the Summons incorrectly shows the service date of 15 September 2006 which is a clerical error and further that no witness accompanied Mr Adaway when service was effected as that is not in accordance with the usual practice for serving documents in England and Wales as referred to in the Form 16.3 duly signed by Mr Adaway and dated 6 December 2006, to exercise the Court's dispensing power in terms of Rule of Court 2.1(1) and relieve the pursuers from the failure to comply with Rules 13.7 and 16.3(2) and allow the Summons to call."

[2] Mr McNeill appeared on behalf of the pursuers. Mr Reid, Solicitor Advocate, was in attendance on behalf of the defenders. As the Summons had not called, there could be no question of the defenders having entered appearance. There had in any event not been service in the manner required by Rule of Court 16.3. Mr McNeill explained that parties had agreed that if Mr Reid was allowed to be heard on behalf of the defenders, that should not be regarded as a waiver of the defenders' right to contend that there had not been a good service or otherwise to cure what was conceded by the pursuers to have been a defect in service. I accordingly authorised the appearance of Mr Reid on behalf of the defenders with a view to him making oral submissions. That was the course of action followed by Lord Macfadyen in Colley v Celtic Pacific Ship Management (Overseas) Ltd 2002 SLT 320, a case to which my attention was drawn. I was grateful for the assistance afforded by Mr Reid's careful submissions, as I was grateful to Mr McNeill for his similarly careful presentation.

[3] Mr McNeill began by advising me that the Summons in the action had been signetted on 13 September 2006. The pursuers' claim was for damages for breach of contract and it was of importance that a relevant claim be made by the pursuers in appropriate proceedings prior to 17 September 2006 because otherwise such obligation as the defenders had to the pursuers would prescribe in terms of Section 6 of the Prescription and Limitation (Scotland) Act 1973. The de quo was whether the pursuers should be held to have made such a claim by virtue of service of the Summons effected on 16 September 2006. Rule of Court 13.7(1)(a) requires that for a Summons to be executed, a copy of the Summons which has passed the signet shall be served on the defenders with a citation in Form 13.7 attached to it. In terms of Rule of Court 16.3(1), a Summons may be executed by service by a Messenger at Arms. In terms of Rule of Court 16.3(2), such service shall be witnessed by one witness who shall sign the certificate of service (which will state his name, occupation and address). In terms of Rule of Court 16.3(6), in application of this Rule to service in a part of the United Kingdom furth of Scotland, reference to a Messenger at Arms shall be construed as a reference to a person entitled to serve Supreme Court writs in that part. Thus, for example, a Summons may be served in England. In that event, it will have to be served by a person entitled to serve Supreme Court writs in England. An English process server is such a person. However, whatever may be the practice followed in England for the service of English writs, a process server serving a Summons which has passed the signet in Scotland will have to follow the requirements for service set out in Rule of Court 16.3 and, in particular, such service must be witnessed by one witness who shall sign the certificate of service in terms of Form 16.3. This did not occur in the present case, hence the need for the pursuers to be relieved from the consequences of this failure to comply with the provisions of the Rules of Court, in terms of Rule of Court 2.1.

[4] As far as service was concerned, Mr McNeill saw there as having been two failures: a failure of service being witnessed by one witness who then signs the certificate of service, Form 16.3; and a failure to make any reference to a witness in the citation, Form 13.7. In addition to these failures, Mr McNeill drew my attention to what he described as a clerical error in the citation, Form 13.7. The citation was dated 15 September 2006, whereas it was on 16 September 2006 that the process server had served the Summons at 12 Parkgate Road, London.

[5] Having identified the relevant failures and the error in the date of the citation, Mr McNeill turned to consider Rule of Court 2.1, which is in the following terms:

"2.1. - (1) The court may relieve a party from the consequences of a failure to comply with a provision in these Rules shown to be due to mistake, oversight or such other excusable cause on such conditions, if any, as the court thinks fit.

(2) Where the court relieves a party from the consequences of a failure to comply with a provision in these Rules under paragraph (1), the court may pronounce such interlocutor as it thinks fit to enable the cause to proceed as if the failure to comply with the provision had not occurred."

Mr McNeill then referred to the commentary on Rule 2.1 which appears in the Parliament House Book and to the decision of Lord Macfadyen in Colley v Celtic Pacific Ship Management (Overseas) Ltd supra. In that case, Lord Macfadyen had granted relief, in terms of Rule 2.1, in respect of failure to serve a citation together with the Summons, as is required by Rule 13.7(1)(a). Mr McNeill took the decision as authority for the competency of his present application, in that the power conferred by Rule 2.1 was sufficient to allow the court to grant relief from the consequences of a failure to comply with the requirements for good service which are imposed by the Rules.

[6] Mr McNeill submitted that the failures here were excusable. It was unfortunate that the English process server had not followed the requirements of the Scottish Rule, but this was not a case of wilful non-observance. The Summons had been duly signetted and a copy had been deposited by a person having the requisite authority at a business address of the defenders. This had been done by way of a formal act, albeit that the process server had taken it upon himself to act in accordance with the procedure followed in his own jurisdiction rather than that provided for in Scotland. The proper date had not been entered in the citation but this was to be explained by the fact that he process server had attempted service of the Summons at another address on the previous day. In the circumstances, the court should grant relief. In answer to a question from me, Mr McNeill said that, in considering whether relief should be granted in terms of Rule of Court 2.1, no regard should be paid to the nature of the action (here a dispute over the implementation of the terms of the commercial lease). Mr McNeill had accepted that some procedural provisions were of more importance than others. The provisions relating to service clearly were important. The requirement of Rule of Court 16.3(2) that there be a witness was both to provide proof and to demonstrate the formality of the act in question. However, if what occurred was viewed from the perspective of the recipient, what occurred might be seen to have been both appropriate and normal. Rules of Court 13 and 16 require there to be formality. Here there was formality. The failure related the way in which it was carried out. This is not a case of complete failure. There had been an attempt to implement the provision, albeit a failure to implement the whole provision. Accordingly, this was a case where justice and equity pointed to the granting of relief.

[7] Mr Reid invited me to refuse the application made on behalf of the pursuers. He pointed me to what he said was the real issue. If the motion was granted and the conceded irregularity was excused, the result would be that the pursuers will have made a relevant claim in appropriate proceedings and, accordingly, avoided prescription. In contrast, the motion is not granted, no relevant claim will have been made and any obligation incumbent on the defenders will have prescribed.

[8] Mr Reid conceded that there was no question but that the power conferred by Rule of Court 2.1 allowed relief to be given in the circumstances here, but the question was whether the power should be exercised. In submitting that it should not, Mr Reid put forward five reasons on which he relied. First, he pointed to what he described as the heightened significance of the validity of citation. He referred in this respect to what appeared in the Opinion of Lord Penrose in Blackfriars (Scotland) Ltd v Shetland Salmon Co's Trustee 2002 SLT 315. Second, to the extent that the pursuers might seek to excuse their failure by reference to being required to act under pressure of time, this was pressure of their own making. Third, there was a equality as between the parties as to the prejudice they might suffer. Both were commercial companies. One was at risk of being prejudiced by losing a claim. The other was at risk of being prejudiced by having a claim made against it. Fourth, while something had been made by Mr McNeill of the fact that the process server had simply followed his usual practice, the court in fact had very limited information as to the circumstances in which the process server had acted. As Mr Reid put it, the court did not have the full picture. For example, the pursuers had been unable to provide a copy of the letter in terms of which the Scottish Messengers at Arms had instructed the process server. It might be the case that the process server had received specific instructions with which he had failed to comply. The court simply did not know. The onus was on the pursuers to persuade the court to exercise its power under Rule of Court 2.1 and accordingly the onus was on the pursuers to explain the full picture. Fifth, if the application were refused, it is not as if the pursuers would not necessarily have a remedy against some other party.

[9] In the course of his submissions, Mr McNeill did not seek to downplay the importance of the form and of formality but, when taking me through the commentary on Rule of Court 2.1 which is found in the Parliament House Book, he emphasised the quotations from authority which referred to the need for the court to do justice notwithstanding a failure to comply with procedural rules:

"... one finds the meaning of the proviso by paying attention to the words 'not being wilful non-observance of' the Rules. I think that the dispensing power was meant to enable the Court to do justice" (Dalgety' Trs v Drummond 1938 SC 709 at 715);

and

"I doubt greatly whether the Court ... is precluded by any Act of Sederunt from doing what it thinks according to justice and equity in any individual case before it" (Boyd, Gilmour & Co v Glasgow & South Western Railway Co (1888) 16 R 104 at 109).

All courts, I imagine, seek to do justice. The difficulty lies in knowing how best to achieve this. Rules of Court are intended to facilitate the doing of justice. In this regard I would respectfully associate myself with what was said by Lord Carloway in Semple Cochrane Plc v Hughes 2001 SLT 1121 at 1124E:

"The rules of court are devised to regulate litigation and, in that regard, to assist both the parties and the court in arriving at a just conclusion in accordance with the law as expeditiously as is reasonable in all the circumstances. As a general principle, parties must, of course, abide by the rules and the sanctions which attach to any failure to do so."

However, Rule of Court 2.1 is a Rule like any other, to be applied according to its terms. Here, I would again respectfully associate myself with what was said by Lord Carloway in Cochrane Plc v Hughes supra. The Rule is not qualified by any words such as "exceptional or extraordinary circumstances", and there is no reason why they should be implied. The Rule allows the court to relieve a party of the consequences of a failure which is due to mistake, oversight or other excusable cause. Mr Reid, rightly in my opinion, made little of the error in the date of the citation. Again rightly, he attached more significance to the absence of a witness to service and the consequential omission of any reference to a witness in the Form 13.7. However, in my opinion, the failure here is excusable. It was not wilful. It has not resulted in any procedural prejudice to the defenders, notwithstanding that I recognise that as a result of my granting relief, the defenders will face a substantial claim to which, as matters presently stand, they appear to have a good answer in the form of a plea of prescription. I consider there to be force in Mr Reid's observations that the court was provided with very limited information as to the precise circumstances which led the process server to assume that it was sufficient for him to follow his usual practice when serving a writ. He may have overlooked or even disobeyed express instructions from the Scottish Messengers at Arms or the instructing solicitors may have failed to give instructions which should have been given in the circumstances. I am not, however, satisfied that I require more detailed information. A mistake was made, it can be assumed that it was made by a professional person and no doubt professional persons should not make mistakes within the field of their particular competence. Acknowledging that, as Mr McNeill submitted, this was not a case where nothing was done. An authorised person was instructed to serve the Summons. He took such steps to do so as would have been sufficient in his own jurisdiction. What he did took the form of a formal act. As a matter of fact, it put the defenders on notice of the claim being made against them. It appears to me that even taking the most adverse view of what occurred from the point of view of the pursuers, I cannot regard their failures as inexcusable. I shall accordingly grant the relief which is sought in the pursuers' motion.

 


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