Walter Lilly & Co Ltd v Dmw Developments Ltd

Walter Lilly & Co Ltd v Dmw Developments Ltd

The mere fact of natural fading of the ABW veneer cannot, in the absence of an identifiable breach of contract, give rise to liability for breach. For the claimant to be liable, breach of an express or implied term must be shown. The court grants declarations to clarify this principle, but leaves open factual disputes and other breach arguments for future proceedings.

Parties
Claimant: Walter Lilly & Co. Ltd.; Defendant: DMW Developments Ltd.
Jurisdiction
England and Wales
Judgment Date
11 December 2008
Procedural Posture
Civil / Ruling on Part 8 Application
Outcome
Declarations granted; costs reserved.
Legal Topics
Declarations, Breach of Contract, Adjudication, CPR Part 8 Procedure
Construction Law Contract Law Declarations Breach of Contract Adjudication CPR Part 8 Procedure

Case Brief

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Parties

Walter Lilly & Co. Ltd.

Claimant

DMW Developments Ltd.

Defendant

Procedural Posture

Civil / Ruling on Part 8 Application

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 the dispute

Ratio Decidendi

The mere fact of natural fading of the ABW veneer cannot, in the absence of an identifiable breach of contract, give rise to liability for breach. For the claimant to be liable, breach of an express or implied term must be shown. The court grants declarations to clarify this principle, but leaves open factual disputes and other breach arguments for future proceedings.

Court Disposition

Declarations granted; 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.