Bath and North East Somerset District Council v Mowlem Plc

Bath and North East Somerset District Council v Mowlem Plc

The existence of a liquidated damages clause does not bar the grant of an interlocutory injunction where actual or public interest losses may exceed or differ from the agreed sum, and damages would not be an adequate remedy. The balance of convenience overwhelmingly favours the Council, and the injunction is appropriate to avoid irreparable and unquantifiable harm.

Parties
Appellant: Bath and North East Somerset District Council; Respondent: Mowlem PLC
Jurisdiction
England and Wales
Judgment Date
20 February 2004
Procedural Posture
Civil Appeal / Appeal From Interlocutory Injunction Decision
Outcome
Appeal dismissed; interlocutory injunction upheld.
Legal Topics
Interlocutory Injunctions, Liquidated Damages, Construction Contracts
Contract Law Civil Procedure Interlocutory Injunctions Liquidated Damages Construction Contracts

Case Brief

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Parties

Bath and North East Somerset District Council

Appellant

Mowlem PLC

Respondent

Procedural Posture

Civil Appeal / Appeal From Interlocutory Injunction Decision

Legal Issues

  1. 1 Whether the existence of a liquidated damages clause precludes the grant of an interlocutory injunction
  2. 2 Whether damages would be an adequate remedy for the Council if the injunction was not granted
  3. 3 Whether the balance of convenience favours granting the injunction

Ratio Decidendi

The existence of a liquidated damages clause does not bar the grant of an interlocutory injunction where actual or public interest losses may exceed or differ from the agreed sum, and damages would not be an adequate remedy. The balance of convenience overwhelmingly favours the Council, and the injunction is appropriate to avoid irreparable and unquantifiable harm.

Court Disposition

Appeal dismissed; interlocutory injunction upheld.

Orders

  • The interlocutory injunction restraining Mowlem from denying access to Warings or other contractors for works under Architect's Instruction No. 103 is upheld.