Dene Construction Ltd & Anor v Antshire Ltd

Dene Construction Ltd & Anor v Antshire Ltd

The JCT contract between Antshire and GJAB was not a sham; it was intended to create legal relations and operated as such. No binding written guarantee was given by Mr. Andrew Donnachie to Dene. Additional works were within the scope of the main contract and not separately payable by Antshire or the Donnachies. Morgan's main claim fails as the contract was with GJAB, but Morgan succeeds for additional works and tax surcharges directly instructed by Antshire/Mr. John Donnachie.

Parties
Claimant: Dene Construction Limited; Claimant: R & J Morgan Carpenters; Defendant: Antshire Ltd.
Jurisdiction
England and Wales
Judgment Date
13 October 2006
Procedural Posture
Civil (construction/contract) / Judgment After Trial
Outcome
Claims by Dene dismissed; Morgan's claim partially succeeds.
Legal Topics
Sham Contracts, Guarantee of Payment, Principal and Agent, Quantum Meruit, Subcontractor Claims
Contract Law Construction Law Sham Contracts Guarantee of Payment Principal and Agent Quantum Meruit Subcontractor Claims

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Parties

Dene Construction Limited

Claimant

R & J Morgan Carpenters

Claimant

Antshire Ltd.

Defendant

Procedural Posture

Civil (construction/contract) / Judgment After Trial

Legal Issues

  1. 1 Whether the JCT contract between Antshire and GJAB was a sham
  2. 2 Whether Antshire and/or the Donnachies gave a binding guarantee to Dene
  3. 3 Whether additional works instructed by the Donnachies were outside the main contract and directly payable

Ratio Decidendi

The JCT contract between Antshire and GJAB was not a sham; it was intended to create legal relations and operated as such. No binding written guarantee was given by Mr. Andrew Donnachie to Dene. Additional works were within the scope of the main contract and not separately payable by Antshire or the Donnachies. Morgan's main claim fails as the contract was with GJAB, but Morgan succeeds for additional works and tax surcharges directly instructed by Antshire/Mr. John Donnachie.

Court Disposition

Claims by Dene dismissed; Morgan's claim partially succeeds.

Orders

  • Dene's claims against Antshire and the Donnachies dismissed.
  • Judgment for Morgan against Antshire and Mr. John Donnachie for £54,356.04.