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24
Feb
2011

WM Rennie & Co Ltd v BP Exploration Operating Co Ltd

Ralph Smith QC and Donald Davidson successfully represented the claimants in an arbitration, WM Rennie & Co Limited v BP Exploration Operating Co Limited. The issue was whether the claimants who were housebuilders and landowners were entitled to compensation on account of development land being sterilised due to BP’s oil pipeline.  The deed of servitude allowed compensation in the event of a refusal of planning permission; but allowed a defence if planning permission would have been refused on grounds unrelated to the pipeline.  The arbiter heard proof on whether non pipeline factors would have led to a refusal of planning permission in the no pipeline world, and proposed to find in favour of the claimants.  The respondents took a stated case to the Inner House on questions of construction of the deed of servitude. The claimants were successful.  The issue was significant since the lost development related to over 120 houses.  Stuart Gale QC also appeared.

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