Amey LG Ltd v Aggregate Industries UK Ltd

Amey LG Ltd v Aggregate Industries UK Ltd

The parties' conduct did not effect a contractual variation of the Subcontract but gave rise to an estoppel by convention, postponing the obligation to provide a final statement until after the last Tar Agreement payment became due. The estoppel ended with the Claimant's letter of 1st June 2018, and the Defendant was obliged to provide a final statement within one month thereafter. The Defendant's failure to do so constituted a breach. The Defendant is no longer entitled to make interim payment applications, and its entitlement is now confined to the final statement. The court declined to impose a blanket restriction on the Defendant's right to adjudicate, leaving such questions to be...

Parties
Claimant: Amey LG Limited; Defendant: Aggregate Industries UK Limited
Jurisdiction
England and Wales
Judgment Date
17 December 2019
Procedural Posture
Civil (construction Dispute) / Judgment After Trial (declaratory Relief)
Outcome
Declarations granted in part; Defendant found in breach for failure to provide final statement by 1st July 2018; other relief refused.
Legal Topics
Variation of Contract, Estoppel by Convention, Final Account Statements, Adjudication Rights, Declaratory Relief
Contract Law Construction Law Variation of Contract Estoppel by Convention Final Account Statements Adjudication Rights Declaratory Relief

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Parties

Amey LG Limited

Claimant

Aggregate Industries UK Limited

Defendant

Procedural Posture

Civil (construction Dispute) / Judgment After Trial (declaratory Relief)

Legal Issues

  1. 1 Whether the parties' conduct varied the Subcontract or gave rise to an estoppel affecting the obligation to provide a final statement
  2. 2 When the Defendant was obliged to provide a final statement under the Subcontract
  3. 3 Whether the Defendant is in breach for failing to provide a final statement

Ratio Decidendi

The parties' conduct did not effect a contractual variation of the Subcontract but gave rise to an estoppel by convention, postponing the obligation to provide a final statement until after the last Tar Agreement payment became due. The estoppel ended with the Claimant's letter of 1st June 2018, and the Defendant was obliged to provide a final statement within one month thereafter. The Defendant's failure to do so constituted a breach. The Defendant is no longer entitled to make interim payment applications, and its entitlement is now confined to the final statement. The court declined to impose a blanket restriction on the Defendant's right to adjudicate, leaving such questions to be...

Court Disposition

Declarations granted in part; Defendant found in breach for failure to provide final statement by 1st July 2018; other relief refused.

Orders

  • Declaration that the Defendant was obliged to submit a composite final statement by 1st July 2018.
  • Declaration that the Defendant's failure to provide a final statement by 1st July 2018 was a breach of its obligations.