Nobiskrug GmbH v Valla Yachts Ltd

Nobiskrug GmbH v Valla Yachts Ltd

The Tribunal did not determine that Valla Yachts was entitled to recover payments made to suppliers solely because they were made under a reservation of rights. Recovery depends on establishing Nobiskrug's liability to pay the suppliers under the Approved Contracts or that Nobiskrug's breach of project management obligations caused the payments. The Tribunal's findings were incomplete on causation and unjust enrichment, warranting remission for further consideration.

Parties
Claimant/builder: Nobiskrug GMBH; Defendant/purchaser: Valla Yachts Limited
Jurisdiction
England and Wales
Judgment Date
14 May 2019
Procedural Posture
Arbitration Appeal / Appeal Under Section 69 of the Arbitration Act 1996
Outcome
Appeal allowed; issues remitted to Tribunal for further consideration.
Legal Topics
Restitution, Unjust Enrichment, Project Management Obligations, Interpretation of Construction Contracts, Damages for Breach of Contract
Arbitration Commercial Law Contract Law Restitution Unjust Enrichment Project Management Obligations Interpretation of Construction Contracts Damages for Breach of Contract

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Parties

Nobiskrug GMBH

Claimant/builder

Valla Yachts Limited

Defendant/purchaser

Procedural Posture

Arbitration Appeal / Appeal Under Section 69 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether Valla Yachts is entitled to recover payments made to suppliers from Nobiskrug in restitution where Nobiskrug was not found liable to pay those suppliers under the Approved Contracts, solely on the basis that the payments were made subject to a reservation of rights.
  2. 2 Whether Nobiskrug breached its project management obligations under the Yacht Construction Agreement and whether such breach caused Valla Yachts to incur additional supplier costs.

Ratio Decidendi

The Tribunal did not determine that Valla Yachts was entitled to recover payments made to suppliers solely because they were made under a reservation of rights. Recovery depends on establishing Nobiskrug's liability to pay the suppliers under the Approved Contracts or that Nobiskrug's breach of project management obligations caused the payments. The Tribunal's findings were incomplete on causation and unjust enrichment, warranting remission for further consideration.

Court Disposition

Appeal allowed; issues remitted to Tribunal for further consideration.

Orders

  • The issues of unjust enrichment and damages are remitted to the Tribunal for further consideration.