A L Challis Ltd v British Gas Trading Ltd

A L Challis Ltd v British Gas Trading Ltd

The payment provisions in the agreements were based on fixed carbon savings per widget as set out in Schedule 4, not on the carbon credits or MTU uplift actually claimed or obtained by British Gas. The contract did not entitle Challis to additional payment for the MTU uplift. The appeal was dismissed.

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 / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Interpretation of Commercial Contracts, Payment Obligations, Statutory Schemes and Contractual Incorporation
Contract Law Commercial Law Interpretation of Commercial Contracts Payment Obligations Statutory Schemes and Contractual Incorporation

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Parties

A. L. Challis Limited

Appellant/claimant

British Gas Trading Limited

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

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 payment provisions in the agreements were defined by reference to carbon credits (including MTU) or by reference to fixed carbon savings.

Ratio Decidendi

The payment provisions in the agreements were based on fixed carbon savings per widget as set out in Schedule 4, not on the carbon credits or MTU uplift actually claimed or obtained by British Gas. The contract did not entitle Challis to additional payment for the MTU uplift. 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.