Cases Flashcards
Twintec Ltd v Volkerfitzpatrick Ltd 2014
Adjudication
Injunction granted to a SC to restrain the contractor from pursuing a reference to adjudication after the appointment of an adjudicator
In the absence of agreement by the parties as to the appointment, any decision made by the adjudicator would be a nullity
Wates Construction Ltd v Franthom Properties Ltd 1991
Retention in separate bank account
F engaged W to construct hotel
W requested F place retention monies in a separate and identifiable account, to which they refused
Judge found for W, stating F had a duty to protect the fund in the interest of the beneficiaries
Immediate obligation to set aside the fund in a separate account
Rayack Construction v Lampeter Meat Co Ltd 1979
Retention in separate bank account
Retention to be held at 50% for 5 years
R requested L set aside the retention monies in a separate bank account (citing clause 34(4)), seeking this through injunction when ignored
Judge found for R - purpose of the provision is to protect both parties from insolvency
Hadley v Baxendale 1854
Unliquidated damages
Hadley was denied recovery of lost profit for late delivery of a crankshaft
Baxendale could only be held liable for losses that were reasonably foreseeable, of which lost profit in this case was not
Gave rise to the two limbs:
Arising naturally
Such as may have been in reasonable contemplation of the parties at the time the contract was made
Trentham (G Percy) Ltd v Archital Luxfer Ltd 1993
Is a contract in place
No written contract in place, but there were oral and written exchanges and transactions were fully executed
Judge found for T, stating there was evidence to justify the finding that there were contracts concluded partly by conduct, which were capable of coming into existence after part of the work had been carried out
Blyth & Blyth Ltd v Carillion Construction Ltd 2001
Novation of design liability
Novation produces a tripartite relationship between the parties
A party cannot claim against a party they only have a novated relationship with for something prior to the date of the novation agreement’s execution
Lindenberg v Canning and Others 1992
Duty to warn & contributory negligence
A demolition of walls in a project was incorrectly completed
C was in breach of contract because they ought to have raised doubts over the unclear drawing, thus not having exercised the required skill and care
L was owed no duty of care from C in negligence
L had been contributorily negligent by its agent (the designer) wrongly showing the walls as non-load bearing so we’re apportioned 25% of the liability
Greaves & Co (Contractors) Ltd v Baynham Meikle & Partners 1975
Duty level dependent on circumstances
Floor not fit for purpose due to methodology and insufficiently strong design
B owed a higher duty of care by virtue of the special circumstances
MT Højgaard A/S v E On Climate and Renewables UK Robin Rigg East Ltd 2017
Fitness for purpose
Contract stipulated 20 year life span of foundations of which the product did not meet
Contract provisions should almost always be given their natural meaning
John Mowlem & Co v British Insulated Callenders Pension Trusts Ltd and ors 1977
Limits on Contractor’s liability for design of others
B engaged J to build a warehouse and J engaged XP for structural engineering services
XP had failed to exercise sufficient skill and care in their design so were negligent
The bills did not impose a design obligation on J so they were not liable for XP’s design
Ascon Contracting Ltd v Alfred McAlpine Construction Isle of Man Ltd 1999
Ownership of programme float
Established that a contractor cannot claim against subcontractors where they have claimed benefit of the float from the Employer as if the float did not exist
Robinson v Harman 1848
Damages must place the injured party in the same position had the other party performed
Established the objective of common contract law being to put the parties in the same position as if the contract had been performed (restitution)
Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd 1915
Should damages be punitive
Damages must be a genuine pre-estimate of the loss incurred - anything else is punitive
Balfour Beatty Construction (Scotland) Ltd v Scottish Power Plc 1994
Applicability of remoteness test to construction confirmed
Power went off during concrete pour
£10,000-£15,000 awarded in damages but major demolition damages not awarded as it would be unreasonable to expect Scottish Power to understand the technical construction operations’ implications of power dropping
Blue Circle Industries Plc v Holland Dredging Company (UK) Ltd 1987
Scope & validity of variations
If works are wholly outside the scope of the original contract, they cannot be ordered as a variation and must be a separate contract
