Reinwood Ltd v L Brown & Sons Ltd

Reinwood Ltd v L Brown & Sons Ltd

A valid notice under clause 30.1.1.4 remains effective for deduction of LADs if all conditions are satisfied at the time of notice, regardless of subsequent cancellation of the certificate of non-completion by an extension of time. The Employer was not in default and the Contractor was not entitled to determine the contract for non-payment.

Parties
Appellant/claimant: Reinwood Limited; Respondent/defendant: L Brown & Sons Limited
Jurisdiction
England and Wales
Judgment Date
21 June 2007
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
JCT Standard Form of Contract, Liquidated and Ascertained Damages (lads), Extension of Time, Interim Certificates, Contractual Notices
Construction Law Contract Law JCT Standard Form of Contract Liquidated and Ascertained Damages (lads) Extension of Time Interim Certificates Contractual Notices

Case Brief

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Parties

Reinwood Limited

Appellant/claimant

L Brown & Sons Limited

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the Employer was entitled to deduct LADs from an interim certificate after the certificate of non-completion was cancelled by a subsequent extension of time
  2. 2 Whether a valid notice under clause 30.1.1.4 remains effective after the underlying certificate of non-completion is cancelled
  3. 3 Whether the Contractor was entitled to determine the contract for non-payment

Ratio Decidendi

A valid notice under clause 30.1.1.4 remains effective for deduction of LADs if all conditions are satisfied at the time of notice, regardless of subsequent cancellation of the certificate of non-completion by an extension of time. The Employer was not in default and the Contractor was not entitled to determine the contract for non-payment.

Court Disposition

Appeal allowed

Orders

  • Employer entitled to rely on notices given on 17 January 2006
  • Contractor not entitled to determine the contract for non-payment under clause 28.2.1