A L Challis Ltd v British Gas Trading Ltd [2017] EWCA Civ 1972 (30 November 2017)

A L Challis Ltd v British Gas Trading Ltd [2017] EWCA Civ 1972 (30 November 2017)

The agreements required British Gas to pay a fixed amount per widget supplied, calculated by reference to an agreed carbon saving per widget (1.018 tonnes of CO2), as set out in Schedule 4. There was no contractual obligation to pay an additional amount reflecting the MTU uplift or any carbon credits subsequently claimed from Ofgem. The payment provisions were clear, and the invoicing/payment structure did not contemplate later adjustments for MTU. The appeal was dismissed.

Citation
[2017] EWCA Civ 1972
Parties
Appellant/claimant: A. L. Challis Limited; Respondent/defendant: British Gas Trading Limited
Jurisdiction
England and Wales
Judgment Date
30 November 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeal dismissed
Legal Topics
Contract Interpretation, Payment Obligations, Carbon Emissions Reduction Target (cert) Scheme, Market Transformation Uplift (mtu), Government Regulatory Schemes
Contract Law Commercial Law Contract Interpretation Payment Obligations Carbon Emissions Reduction Target (cert) Scheme Market Transformation Uplift (mtu) Government Regulatory Schemes

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Parties

A. L. Challis Limited

Appellant/claimant

British Gas Trading Limited

Respondent/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Whether British Gas was contractually obliged to pay Challis an additional 50% to reflect the Market Transformation Uplift (MTU) in carbon credits obtained under the CERT scheme.
  2. 2 Whether the agreements required payment by reference to carbon credits (including MTU) or a fixed price based on carbon savings per widget.

Ratio Decidendi

The agreements required British Gas to pay a fixed amount per widget supplied, calculated by reference to an agreed carbon saving per widget (1.018 tonnes of CO2), as set out in Schedule 4. There was no contractual obligation to pay an additional amount reflecting the MTU uplift or any carbon credits subsequently claimed from Ofgem. The payment provisions were clear, and the invoicing/payment structure did not contemplate later adjustments for MTU. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • The Claimant's appeal is dismissed.
  • The Claimant shall pay the Defendant's costs of the appeal, subject to detailed assessment if not agreed.