School Facility Management Ltd & Ors v Governing Body of Christ The King College [2021] EWCA Civ 1053 (12 July 2021)

School Facility Management Ltd & Ors v Governing Body of Christ The King College [2021] EWCA Civ 1053 (12 July 2021)

In claims for restitution under a contract void as ultra vires, the provider of benefits is not required to give credit for all benefits received under the contract where a change of position defence applies. The judge was entitled to treat the periods of performance as severable, and to apply the change of position defence before counter-restitution. The College could not use earlier irrecoverable payments as a credit against later unjust enrichment claims for periods where no payment was made.

Citation
[2021] EWCA Civ 1053
Parties
Claimant/respondent: School Facility Management Limited; Claimant/respondent: BOSHire Limited; Claimant/respondent: GCP Asset 1 Finance Limited; Defendant/appellant: Governing Body of Christ the King College
Jurisdiction
England and Wales
Judgment Date
12 July 2021
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Unjust Enrichment, Ultra Vires Contracts, Change of Position Defence, Counter Restitution, Finance Leases, Public Authority Powers
Contract Law Restitution Education Law Public Law Unjust Enrichment Ultra Vires Contracts Change of Position Defence Counter Restitution +2 more

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Parties

School Facility Management Limited

Claimant/respondent

BOSHire Limited

Claimant/respondent

GCP Asset 1 Finance Limited

Claimant/respondent

Governing Body of Christ the King College

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether, in a claim for restitution under a contract void as ultra vires, the provider of benefits must give credit for all benefits received under the contract, notwithstanding a change of position defence.
  2. 2 Whether counter-restitution must be applied before or after the change of position defence in unjust enrichment claims.

Ratio Decidendi

In claims for restitution under a contract void as ultra vires, the provider of benefits is not required to give credit for all benefits received under the contract where a change of position defence applies. The judge was entitled to treat the periods of performance as severable, and to apply the change of position defence before counter-restitution. The College could not use earlier irrecoverable payments as a credit against later unjust enrichment claims for periods where no payment was made.

Court Disposition

Appeal dismissed

Orders

  • The appeal by the Governing Body of Christ the King College is dismissed.
  • The order of the High Court is affirmed, requiring the College to pay restitution for the value of the use of the building from September 2017 to judgment.