Court of Appeal allows estate agents’ appeal and awards £1 Million commission
In this case Savills were the lead agent in a claim for £1,000,000 estate agents’ commission on the sale of the 3rd most expensive house sold in the UK.
The house in Kensington Palace Gardens was sold in 2004 by a trust. The claimant estate agents acted pursuant to instructions contained in agreements made with Favermead Ltd, a company controlled by a previous owner who reserved a share of any profit made on re-sale.
In awarding the estate agents commission of £1 million against Favermead in respect of the sale, the Court of Appeal ruled that the claimants did not have to prove that they were the effective cause of the purchase, having introduced the purchaser they were entitled to the £1 million commission. Had it been necessary, the court would have held that the estate agents were the effective cause of the sale, the onus of proving otherwise rested in the circumstances on the Defendant, and the judge had been wrong to find that the Claimants had failed to discharge the burden of proving effective cause.
Jonathan Gaunt QC and Robert Deacon were instructed by CKFT Solicitors for the Appellant.
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