Walker Construction (UK) Ltd v Quayside Homes Ltd & Or

Walker Construction (UK) Ltd v Quayside Homes Ltd & Or

Quayside failed to plead and prove its entitlement to repayment or set-off of the £8,941.16 paid under the adjudicator’s award. The burden of proof was on Quayside to establish its counterclaim, and it adduced no evidence at trial. The trial judge was correct to refuse repayment, though for different reasons. The costs order was wrong in principle as it failed to reflect the commercial reality, the exaggerated nature of Quayside’s counterclaim, and the reasonableness of Walker’s Calderbank offer. The Court of Appeal substituted a proportionate costs order reflecting partial success and conduct.

Parties
Appellant/claimant: Walker Construction (UK) Ltd; Respondent/defendant: Quayside Homes Ltd; Third Party (no Longer Party to Action): Peter Brett Associates LLP
Jurisdiction
England and Wales
Judgment Date
07 February 2014
Procedural Posture
Civil Appeal (construction Contract Dispute) / Appeal From Central London County Court (technology and Construction List) to Court of Appeal
Outcome
Walker's appeal allowed; Quayside's cross-appeal dismissed.
Legal Topics
Adjudication Under Construction Contracts, Costs Orders, Set Off and Counterclaim, Restitution, Pleading Requirements
Civil Procedure Construction Law Contract Law Adjudication Under Construction Contracts Costs Orders Set Off and Counterclaim Restitution Pleading Requirements

Case Brief

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Parties

Walker Construction (UK) Ltd

Appellant/claimant

Quayside Homes Ltd

Respondent/defendant

Peter Brett Associates LLP

Third Party (no Longer Party to Action)

Procedural Posture

Civil Appeal (construction Contract Dispute) / Appeal From Central London County Court (technology and Construction List) to Court of Appeal

Legal Issues

  1. 1 Whether Quayside was entitled to repayment of £8,941.16 paid to Walker under an adjudicator's award
  2. 2 Whether the trial judge erred in refusing Quayside's claim for repayment/set-off
  3. 3 Whether the trial judge's costs order was correct given the outcome and conduct of the parties

Ratio Decidendi

Quayside failed to plead and prove its entitlement to repayment or set-off of the £8,941.16 paid under the adjudicator’s award. The burden of proof was on Quayside to establish its counterclaim, and it adduced no evidence at trial. The trial judge was correct to refuse repayment, though for different reasons. The costs order was wrong in principle as it failed to reflect the commercial reality, the exaggerated nature of Quayside’s counterclaim, and the reasonableness of Walker’s Calderbank offer. The Court of Appeal substituted a proportionate costs order reflecting partial success and conduct.

Court Disposition

Walker's appeal allowed; Quayside's cross-appeal dismissed.

Orders

  • Paragraphs 2(a) and 2(b) of the trial judge’s costs order to stand.
  • Walker to pay 50% of Quayside’s costs from 16 December 2008 to 19 January 2011, assessed on the standard basis if not agreed.