Liberty Mercian Ltd v Dean & Dyball Construction Ltd [2008] EWHC 2617 (TCC) (31 October 2008)

Liberty Mercian Ltd v Dean & Dyball Construction Ltd [2008] EWHC 2617 (TCC) (31 October 2008)

The sectional completion agreement is not void for uncertainty; liquidated damages provisions are not penalties as they are genuine pre-estimates of loss for each section and reflect the parties' intentions. Culpable delay on section 1 properly results in liability for liquidated damages on subsequent sections. Extensions of time and liquidated damages relate to completion dates, not possession dates. The contract is workable and enforceable as drafted.

Citation
[2008] EWHC 2617 (TCC)
Parties
Claimant: Liberty Mercian Limited; Defendant: Dean & Dyball Construction Limited
Jurisdiction
England and Wales
Judgment Date
31 October 2008
Procedural Posture
CPR Part 8 Claim for Declarations / Judgment After Hearing
Outcome
Declarations granted in favour of claimant
Legal Topics
Sectional Completion, Liquidated Damages, Penalty Clauses, Extension of Time
Construction Law Contract Law Sectional Completion Liquidated Damages Penalty Clauses Extension of Time

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 6 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Liberty Mercian Limited

Claimant

Dean & Dyball Construction Limited

Defendant

Procedural Posture

CPR Part 8 Claim for Declarations / Judgment After Hearing

Legal Issues

  1. 1 Whether the sectional completion schedule is void for uncertainty
  2. 2 Whether liquidated damages provisions constitute a penalty
  3. 3 Proper construction and operation of sectional completion agreement

Ratio Decidendi

The sectional completion agreement is not void for uncertainty; liquidated damages provisions are not penalties as they are genuine pre-estimates of loss for each section and reflect the parties' intentions. Culpable delay on section 1 properly results in liability for liquidated damages on subsequent sections. Extensions of time and liquidated damages relate to completion dates, not possession dates. The contract is workable and enforceable as drafted.

Court Disposition

Declarations granted in favour of claimant

Orders

  • Sectional completion agreement is valid and enforceable
  • Liquidated damages provisions are not penalties