Aspect Contracts (Asbestos) Ltd v Higgins Construction Plc

Aspect Contracts (Asbestos) Ltd v Higgins Construction Plc

The contract, as construed with the statutory Scheme, implies that any overpayment made pursuant to an adjudicator's decision is recoverable if final determination is in favour of the paying party, and the limitation period for such a claim runs from the date of payment. Negative declaratory relief is not an adequate or necessary alternative. The successful party's counterclaim remains subject to the ordinary limitation period from the date of breach.

Parties
Appellant: Aspect Contracts (Asbestos) Limited; Respondent: Higgins Construction PLC
Jurisdiction
England and Wales
Judgment Date
29 November 2013
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Adjudication Under Construction Contracts, Implied Terms, Limitation Periods, Restitution
Construction Law Contract Law Civil Procedure Adjudication Under Construction Contracts Implied Terms Limitation Periods Restitution

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Parties

Aspect Contracts (Asbestos) Limited

Appellant

Higgins Construction PLC

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether an implied term exists entitling the unsuccessful party in adjudication to recover payments if final determination is in their favour
  2. 2 When the limitation period for such a claim accrues
  3. 3 Limitation period for counterclaims by the successful party

Ratio Decidendi

The contract, as construed with the statutory Scheme, implies that any overpayment made pursuant to an adjudicator's decision is recoverable if final determination is in favour of the paying party, and the limitation period for such a claim runs from the date of payment. Negative declaratory relief is not an adequate or necessary alternative. The successful party's counterclaim remains subject to the ordinary limitation period from the date of breach.

Court Disposition

Appeal allowed

Orders

  • First preliminary issue answered in the affirmative: implied term exists.
  • Second issue: limitation period is 6 years from payment.