Darlington Borough Council v Wiltshier Northern Ltd [1994] EWCA Civ 6 (28 June 1994)

Darlington Borough Council v Wiltshier Northern Ltd [1994] EWCA Civ 6 (28 June 1994)

Darlington, as assignee of Morgan Grenfell's rights under the building contract, is entitled to recover substantial damages for defects in the Dolphin Centre, assessed as if Darlington had been the employer under the contract, by direct application of the exception to the privity rule recognised in St Martin's Property Corporation Ltd v McAlpine and the constructive trust principle.

Citation
[1994] EWCA Civ 6
Parties
Appellant/plaintiff: Darlington Borough Council; Respondent/defendant: Wiltshier Northern Ltd; Third Party/contracting Party: Morgan Grenfell (Local Authorities Services) Ltd
Jurisdiction
England and Wales
Judgment Date
28 June 1994
Procedural Posture
Appeal / Judgment on Appeal From Preliminary Issues
Outcome
Appeal allowed
Legal Topics
Privity of Contract, Assignment of Contractual Rights, Damages for Breach of Contract, Third Party Rights, Constructive Trust
Contract Law Construction Law Privity of Contract Assignment of Contractual Rights Damages for Breach of Contract Third Party Rights Constructive Trust

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Parties

Darlington Borough Council

Appellant/plaintiff

Wiltshier Northern Ltd

Respondent/defendant

Morgan Grenfell (Local Authorities Services) Ltd

Third Party/contracting Party

Procedural Posture

Appeal / Judgment on Appeal From Preliminary Issues

Legal Issues

  1. 1 Whether Darlington as assignee has a valid claim against Wiltshier for substantial damages for breach of contract
  2. 2 Upon what principles such damages should be assessed

Ratio Decidendi

Darlington, as assignee of Morgan Grenfell's rights under the building contract, is entitled to recover substantial damages for defects in the Dolphin Centre, assessed as if Darlington had been the employer under the contract, by direct application of the exception to the privity rule recognised in St Martin's Property Corporation Ltd v McAlpine and the constructive trust principle.

Court Disposition

Appeal allowed

Orders

  • Orders of 13th October and 3rd December set aside
  • Issue C1 answered 'yes'