East Ayrshire Council v Zurich Insurance plc

Performance bond – Certificate of default – Validity. Court of Session: In an action which concerned a demand which a planning authority served on the defender, in the form of certificate of default, to make payment of £3.3m in terms of a performance bond relating to a coal mining company's breach of its restoration obligations under an agreement relative to planning permission, the court held that the certificate of default was invalid because it omitted to state, as required by the bond agreement, that the pursuer had given the company a 60-day notice of its failure in the restoration obligations.

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