In what was the first of its kind, Sheriff Patrick Hughes found a case against Melfort Pier Holiday Ltd and its director not proven after he and the company were charged for operating as an unregistered property factor. John Christlieb appeared in Oban Sheriff Court on Monday August 13 and pleaded not guilty. Sheriff Patrick Hughes ruled that the case was not proven due to the 85-year-old businessman having a reasonable excuse for not registering. Melfort Pier Holidays Ltd sold five of its 18 properties, while the rest remained part of a holiday-let business. It was argued that Christlieb was operating as an unregistered property factor after continuing to maintain the private homes for a fee.
In Christlieb’s and Melfort’s defence, Sir Crispin Agnew argued over the definition of the word ‘residential’, stating the homes were not residential as nobody resided there for most of the year. He then told the court his client had a reasonable excuse for not registering as a factor – he sought legal advice and had contacted the Scottish Government. Procurator pascal Eoin McGinty argued that Christlieb had acted as a property factor, submitting emails and invoices from him to home owners. He refuted claims of reasonable excuse, stating ignorance is not a defence. While finding the properties to be residential and that Mr Christlieb did maintain the properties in the course of his business, Sheriff Hughes found the case against him not proven. He said that after becoming aware of the fact, Melfort Pier Holiday Ltd made inquiries and the government could not give a definitive answer. ‘In my view, this was a mistake by Melfort [for not registering],’ Mr Hughes added, before stating that the legislation was complicated. Sheriff Hughes also issued a warning to other businesses: ‘The [Property Factor Scotland Act 2011] is a significant piece of legislation. If anyone is in doubt about their applicability they would be well advised to take legal advice at the earliest stage.’