Reinwood Ltd v L Brown & Sons Ltd [2007] EWCA Civ 601 (21 June 2007)

Reinwood Ltd v L Brown & Sons Ltd [2007] EWCA Civ 601 (21 June 2007)

Where the conditions for deduction of LADs are satisfied at the time of notice under clause 30.1.1.4, the Employer is entitled to deduct the specified amount even if the certificate of non-completion is later cancelled; the Contractor was not entitled to give notice of default under clause 28.2.1.

Citation
[2007] EWCA Civ 601
Parties
Appellant/claimant: Reinwood Limited; Respondent/defendant: L Brown & Sons Limited
Jurisdiction
England and Wales
Judgment Date
21 June 2007
Procedural Posture
Appeal From High Court (queen's Bench Division) / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
JCT Standard Form Contract, Liquidated and Ascertained Damages, Extension of Time, Interim Certificates, Termination of Contract
Construction Law Contract Law JCT Standard Form Contract Liquidated and Ascertained Damages Extension of Time Interim Certificates Termination of Contract

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Parties

Reinwood Limited

Appellant/claimant

L Brown & Sons Limited

Respondent/defendant

Procedural Posture

Appeal From High Court (queen's Bench Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the Employer could rely on notices given under clause 30.1.1.4 after cancellation of a certificate of non-completion by extension of time
  2. 2 Whether the Contractor was entitled to give notice of default under clause 28.2.1

Ratio Decidendi

Where the conditions for deduction of LADs are satisfied at the time of notice under clause 30.1.1.4, the Employer is entitled to deduct the specified amount even if the certificate of non-completion is later cancelled; the Contractor was not entitled to give notice of default under clause 28.2.1.

Court Disposition

Appeal allowed

Orders

  • Employer entitled to rely on notices given on 17 January 2006
  • Contractor not entitled to give notice under clause 28.2.1 on 26 January 2006