Walter Lilly & Co Ltd v Dmw Developments Ltd [2008] EWHC 3139 (TCC) (11 December 2008)

Walter Lilly & Co Ltd v Dmw Developments Ltd [2008] EWHC 3139 (TCC) (11 December 2008)

The court held that for the claimant to be liable for the fading of the American Black Walnut veneer, there must be a breach of an express or implied term of the contract. Mere fading, in the absence of an identifiable breach, cannot give rise to liability. The court granted declarations to clarify this principle, leaving factual disputes and other breach arguments open for future proceedings.

Citation
[2008] EWHC 3139 (TCC)
Parties
Claimant: Walter Lilly & Co. Ltd.; Defendant: DMW Developments Ltd.
Jurisdiction
England and Wales
Judgment Date
11 December 2008
Procedural Posture
Part 8 Claim for Declaratory Relief / Judgment on Application for Declaration
Outcome
Declarations granted clarifying breach requirements; costs reserved.
Legal Topics
Adjudication, Declaratory Relief, Supply of Goods, Breach of Contract, CPR Part 7, CPR Part 8
Construction Law Contract Law Adjudication Declaratory Relief Supply of Goods Breach of Contract CPR Part 7 CPR Part 8

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Parties

Walter Lilly & Co. Ltd.

Claimant

DMW Developments Ltd.

Defendant

Procedural Posture

Part 8 Claim for Declaratory Relief / Judgment on Application for Declaration

Legal Issues

  1. 1 Whether natural fading of American Black Walnut veneer constitutes breach of contract
  2. 2 Suitability of Part 8 procedure for determination of dispute
  3. 3 Effect of adjudicator's decision on subsequent court proceedings

Ratio Decidendi

The court held that for the claimant to be liable for the fading of the American Black Walnut veneer, there must be a breach of an express or implied term of the contract. Mere fading, in the absence of an identifiable breach, cannot give rise to liability. The court granted declarations to clarify this principle, leaving factual disputes and other breach arguments open for future proceedings.

Court Disposition

Declarations granted clarifying breach requirements; costs reserved.

Orders

  • Declaration: For the claimant to be liable for the fading of the American Black Walnut there must be a breach of an express or implied term of the contract on the part of the claimant. The fading of the ABW cannot, in the absence of an identifiable breach, give rise to a liability on the part of the claimant.
  • Declaration: If the only cause of the fading was natural light (as found by the adjudicator) then such condition, on its own, could not render the claimant in breach of contract.