PC Harrington Contractors Ltd v CO Partnership Developments Ltd [1998] EWCA Civ 606 (02 April 1998)

PC Harrington Contractors Ltd v CO Partnership Developments Ltd [1998] EWCA Civ 606 (02 April 1998)

The sums deducted by the Management Contractor from the sums due to the Works Contractor and retained by the Employer were never due or payable by the Employer to the Management Contractor and were held in trust for the Works Contractor. The Employer had no right of set-off against these sums, as they were not monies due to the Management Contractor.

Citation
[1998] EWCA Civ 606
Parties
Respondent: P. C. Harrington Contractors Ltd; Appellant: Co Partnership Developments Ltd
Jurisdiction
England and Wales
Judgment Date
02 April 1998
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Retention Funds, Set Off Rights, Fiduciary Duties, Building Contracts
Trusts Construction Law Contract Law Retention Funds Set Off Rights Fiduciary Duties Building Contracts

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Parties

P. C. Harrington Contractors Ltd

Respondent

Co Partnership Developments Ltd

Appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the retention fund of £22,695 was held in trust by the Employer for the Works Contractor
  2. 2 Whether the Employer was entitled to set-off the retention fund against the Management Contractor's liability

Ratio Decidendi

The sums deducted by the Management Contractor from the sums due to the Works Contractor and retained by the Employer were never due or payable by the Employer to the Management Contractor and were held in trust for the Works Contractor. The Employer had no right of set-off against these sums, as they were not monies due to the Management Contractor.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Application for leave to appeal to the House of Lords refused