Jawaby Property Investment Ltd v The Interiors Group Ltd & Anor [2016] EWHC 557 (TCC) (16 March 2016)

Jawaby Property Investment Ltd v The Interiors Group Ltd & Anor [2016] EWHC 557 (TCC) (16 March 2016)

TIG's Valuation 7 was not a valid Interim Application under clause 4.8.1 because it was described as an 'initial assessment', did not state the sum TIG considered due at the relevant due date, and was materially different from previous applications in form and substance. There was no established course of dealing extending to acceptance of such provisional documents as valid Interim Applications. Consequently, no default event occurred under the Escrow Agreement.

Citation
[2016] EWHC 557 (TCC)
Parties
Claimant: Jawaby Property Investment Limited; First Defendant: The Interiors Group Limited; Second Defendant: Andrew Stephan George Black
Jurisdiction
England and Wales
Judgment Date
16 March 2016
Procedural Posture
Part 8 Claim for Declaratory and Injunctive Relief / Judgment After Expedited Hearing
Outcome
Declaratory relief granted in favour of JPIL; no default event under the Escrow Agreement.
Legal Topics
Interim Payment Applications, Pay Less Notices, Estoppel by Convention, Waiver of Contractual Requirements, Escrow Agreements
Construction Law Contract Law Interim Payment Applications Pay Less Notices Estoppel by Convention Waiver of Contractual Requirements Escrow Agreements

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Parties

Jawaby Property Investment Limited

Claimant

The Interiors Group Limited

First Defendant

Andrew Stephan George Black

Second Defendant

Procedural Posture

Part 8 Claim for Declaratory and Injunctive Relief / Judgment After Expedited Hearing

Legal Issues

  1. 1 Whether TIG's Valuation 7 was a valid Interim Application under clause 4.8.1 of the contract
  2. 2 Whether the 18th January 2016 email and attachments constituted a valid Pay Less Notice under clause 4.9 of the contract

Ratio Decidendi

TIG's Valuation 7 was not a valid Interim Application under clause 4.8.1 because it was described as an 'initial assessment', did not state the sum TIG considered due at the relevant due date, and was materially different from previous applications in form and substance. There was no established course of dealing extending to acceptance of such provisional documents as valid Interim Applications. Consequently, no default event occurred under the Escrow Agreement.

Court Disposition

Declaratory relief granted in favour of JPIL; no default event under the Escrow Agreement.

Orders

  • No valid Interim Application was made by TIG on 7 January 2016 within the meaning of clause 4.8.1 of the contract.
  • No default event has occurred within the meaning of the Escrow Agreement.