Multiplex Constructions (UK) Ltd v Cleveland Bridge UK Ltd [2006] EWHC 1341 (TCC) (05 June 2006)

Multiplex Constructions (UK) Ltd v Cleveland Bridge UK Ltd [2006] EWHC 1341 (TCC) (05 June 2006)

The court held that the Supplemental Agreement was a full and final settlement of all claims and disputes existing before 15 February 2004, except as expressly reserved. Multiplex was not entitled to revalue the agreed gross valuation as at 15 February 2004 or make deductions except as permitted by the contract. The conduct of Multiplex in issuing certificates 37 and 38 and withholding payment constituted repudiatory breach. CB was entitled to treat the contract as repudiated and claim damages. The contractual cap on liability applied except where claims fell outside its scope.

Citation
[2006] EWHC 1341 (TCC)
Parties
Claimant/part 20 Defendant: Multiplex Constructions (UK) Limited; First Defendant/part 20 Claimant: Cleveland Bridge UK Limited; Second Defendant: Cleveland Bridge Dorman Long Engineering Limited
Jurisdiction
England and Wales
Judgment Date
05 June 2006
Procedural Posture
Consolidated Civil Action (technology and Construction Court) / Trial of Preliminary Issues
Outcome
Judgment for the defendants (CB and Cleveland Bridge Dorman Long Engineering Limited) on the preliminary issues; Multiplex found to have repudiated the contract.
Legal Topics
Subcontract Disputes, Breach of Contract, Repudiation, Damages, Valuation of Works, Settlement Agreements, Adjudication, Variation and Omission of Works
Construction Law Contract Law Subcontract Disputes Breach of Contract Repudiation Damages Valuation of Works Settlement Agreements +2 more

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Parties

Multiplex Constructions (UK) Limited

Claimant/part 20 Defendant

Cleveland Bridge UK Limited

First Defendant/part 20 Claimant

Cleveland Bridge Dorman Long Engineering Limited

Second Defendant

Procedural Posture

Consolidated Civil Action (technology and Construction Court) / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether the Heads of Agreement and Supplemental Agreement resolved all prior claims and disputes between the parties
  2. 2 Whether Multiplex was entitled to revalue works and make deductions in certificates 37 and 38
  3. 3 Whether CB or Multiplex repudiated the contract

Ratio Decidendi

The court held that the Supplemental Agreement was a full and final settlement of all claims and disputes existing before 15 February 2004, except as expressly reserved. Multiplex was not entitled to revalue the agreed gross valuation as at 15 February 2004 or make deductions except as permitted by the contract. The conduct of Multiplex in issuing certificates 37 and 38 and withholding payment constituted repudiatory breach. CB was entitled to treat the contract as repudiated and claim damages. The contractual cap on liability applied except where claims fell outside its scope.

Court Disposition

Judgment for the defendants (CB and Cleveland Bridge Dorman Long Engineering Limited) on the preliminary issues; Multiplex found to have repudiated the contract.

Orders

  • Multiplex not entitled to revalue or deduct from the agreed gross valuation as at 15 February 2004 except as contractually permitted.
  • CB entitled to damages for repudiatory breach, subject to contractual cap.