Rupert Morgan Building Services (Llc) Ltd. v Jervis & Anor [2003] EWCA Civ 1563 (12 November 2003)

Rupert Morgan Building Services (Llc) Ltd. v Jervis & Anor [2003] EWCA Civ 1563 (12 November 2003)

Where a construction contract provides for payment by architect's certificate, and no notice of intention to withhold payment is served under s.111(1) of the 1996 Act, the employer must pay the certified sum by the due date, regardless of disputes about the underlying work. The provision is about cash-flow, not final liability, and does not make the certificate conclusive as to the ultimate entitlement.

Citation
[2003] EWCA Civ 1563
Parties
Claimant/respondent: Rupert Morgan Building Services (LLC) Ltd; Defendant/appellant: David Jervis; Defendant/appellant: Harriet Jervis
Jurisdiction
England and Wales
Judgment Date
12 November 2003
Procedural Posture
Civil Appeal / Appeal From Winchester County Court Decision
Outcome
Appeal dismissed
Legal Topics
Withholding Payment Under Construction Contracts, Interpretation of Housing Grants, Construction and Regeneration Act 1996 S.111, Interim Certificates and Payment Obligations
Construction Law Contract Law Withholding Payment Under Construction Contracts Interpretation of Housing Grants, Construction and Regeneration Act 1996 S.111 Interim Certificates and Payment Obligations

Case Brief

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Parties

Rupert Morgan Building Services (LLC) Ltd

Claimant/respondent

David Jervis

Defendant/appellant

Harriet Jervis

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Winchester County Court Decision

Legal Issues

  1. 1 Whether failure to serve a notice of intention to withhold payment under s.111(1) of the Housing Grants, Construction and Regeneration Act 1996 precludes the employer from withholding payment of sums certified under a construction contract
  2. 2 Whether the sum certified by an architect is conclusive or merely determines cash-flow pending final determination

Ratio Decidendi

Where a construction contract provides for payment by architect's certificate, and no notice of intention to withhold payment is served under s.111(1) of the 1996 Act, the employer must pay the certified sum by the due date, regardless of disputes about the underlying work. The provision is about cash-flow, not final liability, and does not make the certificate conclusive as to the ultimate entitlement.

Court Disposition

Appeal dismissed

Orders

  • Appellant to pay the respondent's costs of the appeal, subject to detailed assessment if not agreed