Remedies For Material Misrepresentation - Don't Count Your Chickens... Or Your Grouse!

In the case of Cramaso LLP v Viscount Reidhaven's Trustees [2010] CSOH 62, the Court of Session decided that where representations are made to an individual, inducing a limited liability partnership (of which he was a member) to enter into a lease, if those representations transpire to be false, neither the individual - nor his LLP - have a right of recourse.

Facts

The estate of Castle Grant was owned by the Defenders. The productivity of the moor at the Estate had been in decline and required substantial investment. As such, the Defenders decided to offer a 15 year lease.

Mr Erskine was interested in taking on such a lease. To do so, he intended to set up a limited liability partnership, Cramaso LLP ("Cramaso"), to be the tenant. He did not make that intention clear to the Defenders. Upon entering the lease, Cramaso invested significant sums in the Estate, however, grouse numbers remained lower than expected. Cramaso claimed that they only entered into the