S & W Process Engineering Ltd v Cauldron Foods Ltd

S & W Process Engineering Ltd v Cauldron Foods Ltd

The contract was evidenced in writing and included a binding cost control regime based on Target Order Values, with increases only by agreed procedure. Express authorisation at weekly meetings, minuted by S&W, was required for additional work or expenditure. The Target Order Values were not merely aspirational but formed the base cost, with increases only by the agreed process. Quantum meruit is not available for work within the contract scope or not authorised; only in limited circumstances where additional work was authorised but the cost not agreed might such a claim arise.

Parties
Claimant: S & W Process Engineering Ltd; Defendant: Cauldron Foods Ltd
Jurisdiction
England and Wales
Judgment Date
28 January 2005
Procedural Posture
Civil (construction Contract Dispute) / Preliminary Issues Determination
Outcome
Preliminary issues determined; contract terms and authorisation procedure clarified; no final determination on quantum meruit or specific sums due.
Legal Topics
Formation of Contract, Express and Implied Terms, Variation of Contract, Quantum Meruit, Cost Control Mechanisms
Contract Law Construction Law Formation of Contract Express and Implied Terms Variation of Contract Quantum Meruit Cost Control Mechanisms

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Parties

S & W Process Engineering Ltd

Claimant

Cauldron Foods Ltd

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Preliminary Issues Determination

Legal Issues

  1. 1 How was the contract formed and was it evidenced in writing?
  2. 2 What were the express and/or implied terms of the contract?
  3. 3 What is the effect of the Target Order Values?

Ratio Decidendi

The contract was evidenced in writing and included a binding cost control regime based on Target Order Values, with increases only by agreed procedure. Express authorisation at weekly meetings, minuted by S&W, was required for additional work or expenditure. The Target Order Values were not merely aspirational but formed the base cost, with increases only by the agreed process. Quantum meruit is not available for work within the contract scope or not authorised; only in limited circumstances where additional work was authorised but the cost not agreed might such a claim arise.

Court Disposition

Preliminary issues determined; contract terms and authorisation procedure clarified; no final determination on quantum meruit or specific sums due.