Birse Construction Ltd v McCormick (UK) Ltd (Formerly Mccormick (UK) Plc) [2005] EWCA Civ 940 (26 July 2005)

Birse Construction Ltd v McCormick (UK) Ltd (Formerly Mccormick (UK) Plc) [2005] EWCA Civ 940 (26 July 2005)

Birse's causes of action in respect of its claims for additional Site Establishment costs accrued in late November/December 1996 when the claims were made and either rejected or not responded to by the Managing Contractor. There was no contractual basis for deferring accrual until the final payment and release stage. Accordingly, the claims were statute-barred under the Limitation Act 1980.

Citation
[2005] EWCA Civ 940
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 High Court (technology and Construction Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Limitation of Actions, Accrual of Cause of Action, Construction Contracts, Claims for Additional Payment, Interpretation of Contract Terms
Construction Law Contract Law Limitation of Actions Accrual of Cause of Action Construction Contracts Claims for Additional Payment Interpretation of Contract Terms

Case Brief

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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 High Court (technology and Construction Court) to Court of Appeal

Legal Issues

  1. 1 Whether Birse's claims for additional Site Establishment costs are statute-barred under the Limitation Act 1980
  2. 2 When the cause of action for such claims accrued under the contract

Ratio Decidendi

Birse's causes of action in respect of its claims for additional Site Establishment costs accrued in late November/December 1996 when the claims were made and either rejected or not responded to by the Managing Contractor. There was no contractual basis for deferring accrual until the final payment and release stage. Accordingly, the claims were statute-barred under the Limitation Act 1980.

Court Disposition

Appeal dismissed

Orders

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