Birse Construction Ltd v McCormick (UK) Ltd (Formerly Mccormick (UK) Plc)

Birse Construction Ltd v McCormick (UK) Ltd (Formerly Mccormick (UK) Plc)

Birse's causes of action for additional Site Establishment costs accrued in late November/December 1996 when the claims were made and either rejected or not responded to, and not at the time of final payment. There is nothing in the contract, including Article 39, to delay accrual of the cause of action. The claims are therefore statute-barred under the Limitation Act 1980.

Parties
Claimant/appellant: Birse Construction Limited; Defendant/respondent: McCormick (UK) Limited (formerly McCormick (UK) Plc)
Jurisdiction
England and Wales
Judgment Date
26 July 2005
Procedural Posture
Civil Appeal / Appeal From Queen's Bench Division, Technology and Construction Court, on Preliminary Issues
Outcome
Appeal dismissed; renewed application for permission to appeal refused.
Legal Topics
Limitation of Actions, Contract Interpretation, Construction Contracts, Statute Barred Claims
Construction Law Contract Law Limitation of Actions Contract Interpretation Construction Contracts Statute Barred Claims

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Parties

Birse Construction Limited

Claimant/appellant

McCormick (UK) Limited (formerly McCormick (UK) Plc)

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Queen's Bench Division, Technology and Construction Court, on Preliminary Issues

Legal Issues

  1. 1 When does a cause of action accrue for additional Site Establishment costs under the contract?
  2. 2 Are the claims for additional Site Establishment costs statute-barred under the Limitation Act 1980?
  3. 3 Does Article 39 of the contract provide for a review of claims at final payment?

Ratio Decidendi

Birse's causes of action for additional Site Establishment costs accrued in late November/December 1996 when the claims were made and either rejected or not responded to, and not at the time of final payment. There is nothing in the contract, including Article 39, to delay accrual of the cause of action. The claims are therefore statute-barred under the Limitation Act 1980.

Court Disposition

Appeal dismissed; renewed application for permission to appeal refused.

Orders

  • Appeal on the ground on which permission was granted is dismissed.
  • Renewed application for permission to appeal on other grounds is refused.