London & Regional (St George's Court) Ltd v Ministry of Defence & Anor

London & Regional (St George's Court) Ltd v Ministry of Defence & Anor

The settlement agreement did not extinguish L & R’s liability to Shepherds for Tenant’s Variations; therefore, L & R retained the right to claim from MoD under the AFL. Certificates under clause 4.2(a) of the AFL are not the sole or binding trigger for payment; actual payment, adjudication, or court order can also trigger MoD’s liability. Certificates are not binding as to the fact or amount of a Tenant’s Variation.

Parties
Claimant/respondent: London & Regional (St George’s Court) Limited; Defendants/appellants: Ministry of Defence and Secretary of State for Defence
Jurisdiction
England and Wales
Judgment Date
06 November 2008
Procedural Posture
Civil Appeal / Appeal From High Court (technology & Construction Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Indemnity, Certification in Construction Contracts, Settlement Agreements, Tenant’s Variations, Condition Precedent
Contract Law Construction Law Indemnity Certification in Construction Contracts Settlement Agreements Tenant’s Variations Condition Precedent

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Parties

London & Regional (St George’s Court) Limited

Claimant/respondent

Ministry of Defence and Secretary of State for Defence

Defendants/appellants

Procedural Posture

Civil Appeal / Appeal From High Court (technology & Construction Court) to Court of Appeal

Legal Issues

  1. 1 Whether the settlement agreement extinguished L & R’s liability to Shepherds, thereby barring recovery from MoD under the AFL (‘no loss’ issue)
  2. 2 Whether a certificate under clause 4.2(a) of the AFL is a condition precedent to payment by MoD
  3. 3 Whether such certificates are binding as to the fact and amount of a Tenant’s Variation

Ratio Decidendi

The settlement agreement did not extinguish L & R’s liability to Shepherds for Tenant’s Variations; therefore, L & R retained the right to claim from MoD under the AFL. Certificates under clause 4.2(a) of the AFL are not the sole or binding trigger for payment; actual payment, adjudication, or court order can also trigger MoD’s liability. Certificates are not binding as to the fact or amount of a Tenant’s Variation.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed in relation to issue 6 (‘no loss’ issue).
  • The appeal is dismissed in relation to issues 1(b) and 1(c) (certification issues).