All posts by James

REUTERS | Alex Domanski

A case of two halves

In our last blog Katy Saunders said farewell to the World Cup whilst also discussing key personnel LDs, in Bluewater Energy Services Limited BV v Mercon Steel Structures. While any mention of liquidated damages in the TCC sparks almost as much water cooler chatter as Luis Suarez’s appetite, this post discusses another interesting outcome from Bluewater.

Bluewater also tackled the issue of a party’s right to exercise discretion, and comments on how a good faith clause might affect such a right. With good faith clauses becoming more commonplace in construction contracts, it is important to consider their effect on how we interpret the contract as a whole. Continue reading

REUTERS | Ilya Naymushin

The astute and keen-eyed readers of this blog will have noticed the paucity of adjudication decisions coming from the TCC in recent months. They may have also noticed that Scotland’s Court of Session has fared a little bit better in the judgment stakes, giving us the odd case to write about (most recently, Jonathan looked at Miller v BDP, I considered T Clarke v MMAXX). The judgment in Charles Henshaw & Sons Ltd v Steward & Shields Ltd is therefore welcome in providing me (and others) with something more to say.

Even though Lady Smith’s judgment is mainly a restatement of existing principles, it is interesting because she sits in the Inner House, which (I understand) makes this case equivalent to an English Court of Appeal case. Just like south of the border, we seldom see appellate court decisions dealing with adjudication. Continue reading

REUTERS | Kim Hong-Ji

For those of you unfamiliar with the role of the project monitoring surveyor (PMS), they are commonly appointed by banks or other funding institutions to advise on the risks of acquiring an interest in a development, and then monitoring the development, approving draw-downs from the funding institutions and the like. As a result of many developers becoming insolvent from 2008 onwards, claims against these surveyors have been quite commonplace in the past few years as banks seek to recover their losses.

I have undertaken project monitoring myself and acted as expert witness in a number of cases where banks have pursued PMSs. However, other than Practical Law’s excellent practice note, the only other detailed guidance is a RICS Guidance Note, and even that is quite broad-brush (it is currently being updated). Furthermore, to the best of my knowledge, the role of PMS had not previously been dealt with in a High Court judgment. I have therefore been eagerly anticipating the TCC’s judgment in Bank of Ireland v Faithful & Gould & CBRE ever since the case appeared in the TCC court list back in April. Continue reading

REUTERS | Eric Thayer

Reading through a judgment the length of Bluewater Energy Services BV v Mercon Steel Structures BV and others is no mean feat. Luckily for the brave and steadfast, the case considers a number of core issues that arise time and again in construction contracts and raises some interesting questions. One example that caught my eye was the analysis of liquidated damages (LADs) levied for the replacement or removal of key personnel.

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REUTERS | Vasily Fedosenko

A couple of weeks ago I wrote about party-party costs and whether adjudicators are up to the job of dealing with the parties’ costs, if they have the power to do so. In setting out my thoughts on whether adjudicators do have the skills (and I think those with arbitrator training certainly do have), I didn’t mention some of the intricacies of costs, such as what happens if one of the parties asks the adjudicator to make a split costs or issues-based order. I thought about it recently, only because I was considering a different issue – should I allow the referring party to put in yet another submission – and I wondered what impact a further submission may have on the overall outcome of the adjudication, as well as whether it would incur further unnecessary costs at a late stage of the process.

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REUTERS | Eduardo Munoz

It’s not often that we get a TCC judgment dealing with the interpretation of everyone’s favourite suite of domestic contracts, the JCT. Therefore, if you are a bit of a saddo like me, you will have read Akenhead J’s judgment in Oksana Mul v Hutton Construction Ltd with interest. In this case Akenhead J decided as a preliminary issue the meaning of an “appropriate deduction” under clause 2.30 of the Intermediate Form of Contract, 2005 edition (IC05), which is something I’ve had to deal with in a few adjudications over the years.

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REUTERS |

Some of you may recall poor Mr Babb the surveyor who, in 2001, ended up with personal liability for a valuation he prepared when his employer went bust (Merrett v Babb).

Fast forward to 2014 and Sainsbury’s Supermarkets Ltd v Condek Holdings Ltd and others, where Sainsbury’s tried to run the same argument when it claimed that one of its car parks was so defective that it had to be demolished.

Unlike Miss Merrett and her mother, Sainsbury’s failed, giving designers some comfort as to their potential liability. Continue reading

REUTERS | Jose Miguel Gomez

Relief from Sanctions: The background

Following the implementation of the Civil Procedure Rules it was widely considered that the courts were being too indulgent in their attitude towards parties that failed to comply with deadlines imposed by rules, practice directions and court orders. This general perception led to the publication of the Review of Civil Litigation Costs Final Report of December 2009, in which Sir Rupert Jackson noted that:

“…courts at all levels have become too tolerant and delays and non-compliance with orders. In so doing they have lost sight of the damage which the culture of delay and non-compliance is inflicting upon the civil justice system. The balance therefore needs to be redressed.”

On 1 April 2013 a revised version of CPR 3.9 was introduced, intended to redress the balance referred to above by altering the factors to which the courts should have regard in determining whether to grant relief from sanctions. Continue reading

REUTERS | Tobias Schwarz

Aristotle:

“How many a dispute could have been deflated into a single paragraph if the disputants had dared to define their terms.”

The first half of 2014 has seen a number of important decisions affecting construction and engineering practitioners. However, we have not included cases arising from the Jackson reforms, particularly costs management and relief from sanctions applications as a consequence of the Court of Appeal’s judgment in Mitchell v News Group. Continue reading

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