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Thank you
for your reply, and your misunderstanding is indeed not surprising because
it is one shared by many. Scots law is in a period of academic and judicial
rationalisation, and the condictio causa data, causa non secuta is a part
of that ongoing debate. As far as the authority of Cantiere San Rocco v.
Clyde Shipbuilding & Engineering Co. 1923 S.L.T. 624, i would say that the
case is seriously doubted by modern academics, not only in its decision,
but in its exposition of the condictio causa data causa non secuta. The
debate is too lengthy and problematic to discuss here, but i would refer
you to two excellent articles by Professor R. Evans-Jones: Unjustified Enrichment,
Contract, and The Third Reception of Roman Law in Scotland. 1993 LQR, and
also Roman Law in Scotland and England: Developing one law of Britain 1999
LQR.
Secondly you said.
"My first difficulty is that, whereas I understand you to say the condictio
causa data applies where the purpose which fails is outwith contract,
my understanding of both Viscount Stair and Lord President Rodger is simply
that, whether or not the purpose which fails is within, the liability
which warrants repetition is outwith, contract"
This is in fact an understandable interpretation, but
it was not a point that was really of concern to the Lord President in
Shilliday v Smith. Again, the analysis of the problem is complex, but
certainly it would seem that although the liability that warrants repetition
is within contract, it has persuasively been argued that the ground of
repetition is not the unjustified enrichment remedy of causa data causa
non secuta.(See an article by R. Evans-Jones, The Dark Side of Connelly
v Simpson. 1994(?) JR). This will be seen from the articles above which
i have referred you to. Let me try and expose the problems with an example,
which i find always to be of help. Let's say i contract with you a director
of a company to buy some shares at a value of £1000 which will be
delivered at a postponed date. Let's imagine that first the director does
not in fact deliver the shares, and that secondly the company becomes
insolvent. The shares are now worth £10. If i sue for damages for
the directors material breach i can only recover to the extent of my loss,
the £10, but in fact i have in anticipation of the contract being
performed paid £1000 to the director. So, by what mechanism is the
money to be repaid? The liability in repetition to repay is not the condictio
causa data causa non secuta, that is clear from Shilliday v Smith, and
also a case worth noting, Connelly v Simpson 1994 S.L.T. 1096. The answer
most probably is that repetition should simply be seen as a remedy within
contract to recover pre-payments in cases of material breach. It is functionally
better that the law of contract resolves these matters for itself. Scots
law in this area is in need of further clarification by the courts, and
i feel i can do little more to help you in this regard. Concededly there
is House of Lords authority in Cantiere San Rocco, to the effect that
pre-payments are recoverable by condictio causa data causa non secuta
where the contract has been frustrated by supervening impossibility. If
you read closely the passage from the Lord President in Shilliday v Smith
- "this is a useful reminder that, even if in Cantiere San Rocco v. Clyde
Shipbuilding & Engineering Co. 1923 S.L.T. 624 the House of Lords included
certain situations relating to the non-performance of a contract under
the heading of the condictio causa data" - i think you will agree that
what Lord Rodger is doing is having a subtle sideswipe at the decision,
and carefully iterating the point that the condictio causa data causa
non secuta only applies to situations outwith contract. Therefore, in
Shilliday v Smith, it was services and property given in contemplation
of marriage.
The second of your confusions in relation to the meaning
and scope of sine causa is not unsurprising. This is because its potential
in scots law has not been realised, and its scope and applicability have
yet to be coherently delineated. Part of your confusion is because Stair
in the passage which you quote, and which appears in the opinion of the
Lord President in Shilliday, is rather too loose with the way in which
he presents causa data, and sine causa. The two are unified by the notion
that where the "cause cease by which they become ours" they must be restored.
The difference between causa data and sine cause is actually pedantic
in this context. Causa data is simply the genus of "cause" relating to
to future events. Thus the definition of causa data as recovery of benefit
for a future purpose which fails. Sine causa does not apply in this context
because the cause for which the benefit confers is not undone by the failure
of some future purpose to materialise, but by some other factor, say the
mistake of the transferor, but where nonetheless, the "cause" or basis
of the transfer does not in fact exist. If the distinction is not clear
it is because in truth it is one that Scots law has yet to expose at all.
Sine causa generally has an elusive and poorly defined status in Scots
Law, but i think if you look at the 10th ed of Gloag and Hendersons, Introduction
to the Laws of Scotland, you will find some assistance. It would seem
that sine cause is simply a residual category which embraces situations
where the condictio indebit does not apply perhaps because the transfer
of the enrichment was not one legally due.
If all of this has been puzzling it is because a lot of work is being
done by academics and the courts to rationalise Scots Law in this area.
I hope i have been of some help. <== Previous message Back to index Next message ==> |
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