Quest Advisors Limited Sharriba Ltd v McFeely & Anor

Quest Advisors Limited Sharriba Ltd v McFeely & Anor

The order of 22 October 2009 did not remove Quest's obligation to make stage payments under clause 18.4 of the contract. Quest's failure to make the payments, based on a genuine but mistaken belief about the effect of the order, did not amount to repudiation. The order for payment of £600,000 was not justified as an interim payment under CPR 25.7 and should be reduced to £136,396.46 plus VAT.

Parties
Claimant/appellant: Quest Advisors Limited; Claimant/appellant: Sharriba Limited; Defendant/respondent: Thomas Bernard McFeely; Defendant/respondent: Conal Derek McFeely
Jurisdiction
England and Wales
Judgment Date
09 December 2011
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed in part; cross-appeals dismissed
Legal Topics
Specific Performance, Repudiation of Contract, Interim Payments, Construction of Court Orders
Contract Law Civil Procedure Specific Performance Repudiation of Contract Interim Payments Construction of Court Orders

Case Brief

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Parties

Quest Advisors Limited

Claimant/appellant

Sharriba Limited

Claimant/appellant

Thomas Bernard McFeely

Defendant/respondent

Conal Derek McFeely

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether the order of 22 October 2009 removed Quest's obligation to make stage payments under clause 18.4 of the contract
  2. 2 Whether Quest's failure to make stage payments amounted to repudiation of the contract
  3. 3 Whether the order for payment of £600,000 was properly made as an interim payment

Ratio Decidendi

The order of 22 October 2009 did not remove Quest's obligation to make stage payments under clause 18.4 of the contract. Quest's failure to make the payments, based on a genuine but mistaken belief about the effect of the order, did not amount to repudiation. The order for payment of £600,000 was not justified as an interim payment under CPR 25.7 and should be reduced to £136,396.46 plus VAT.

Court Disposition

Appeal allowed in part; cross-appeals dismissed

Orders

  • Paragraph 3 of the order of 1 March 2010 varied to substitute £136,396.46 plus VAT for £600,000 plus VAT, to be paid within 28 days
  • Defendants' appeals on repudiation issues dismissed