Network Rail Infrastructure Ltd v ABC Electrification Ltd

Network Rail Infrastructure Ltd v ABC Electrification Ltd

The word 'default' in clause 1(1)(j)(iii) of the contract carries its natural and ordinary meaning, encompassing any failure by ABC to comply with its obligations under the contract. There is no contractual or contextual basis for restricting 'default' to wilful and deliberate breaches. The declarations sought by Network Rail are granted, confirming that Disallowed Cost includes any cost due to any failure by ABC to comply with its contractual obligations.

Parties
Claimant: Network Rail Infrastructure Limited; Defendant: ABC Electrification Limited
Jurisdiction
England and Wales
Judgment Date
08 July 2019
Procedural Posture
Part 8 Claim / Judgment
Outcome
Declarations granted in favour of Network Rail
Legal Topics
Interpretation of Contract Terms, Declaratory Relief, Construction Contracts
Contract Law Interpretation of Contract Terms Declaratory Relief Construction Contracts

Case Brief

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Parties

Network Rail Infrastructure Limited

Claimant

ABC Electrification Limited

Defendant

Procedural Posture

Part 8 Claim / Judgment

Legal Issues

  1. 1 Proper interpretation of 'default' in clause 1(1)(j)(iii) of the contract
  2. 2 Whether 'Disallowed Cost' includes any cost due to any failure by ABC to comply with its obligations under the contract

Ratio Decidendi

The word 'default' in clause 1(1)(j)(iii) of the contract carries its natural and ordinary meaning, encompassing any failure by ABC to comply with its obligations under the contract. There is no contractual or contextual basis for restricting 'default' to wilful and deliberate breaches. The declarations sought by Network Rail are granted, confirming that Disallowed Cost includes any cost due to any failure by ABC to comply with its contractual obligations.

Court Disposition

Declarations granted in favour of Network Rail

Orders

  • Declaration that 'Disallowed Cost' includes any cost due to any failure by ABC to comply with its obligations under the contract
  • Declaration that costs incurred due to failure to comply with clauses 41(2) and 43 are Disallowed Cost