Pevensey Coastal Defence Limited v Environment Agency

Pevensey Coastal Defence Limited v Environment Agency

Schedule 12 of the FDSA permits PCDL to claim for Relevant Cost on a retrospective basis in respect of a material increase in storm events, as the definition of Relevant Cost and the terms of Schedule 12 (particularly paragraph 4.6) support recovery of costs already incurred during the relevant period, and the Agreement does not contain clear words limiting recovery to future costs only.

Parties
Claimant: Pevensey Coastal Defence Limited; Defendant: Environment Agency
Jurisdiction
England and Wales
Judgment Date
13 June 2024
Procedural Posture
Part 8 Proceedings / Judgment on Point of Contract Construction
Outcome
Claimant's construction accepted; retrospective claim permitted
Legal Topics
Interpretation of PFI Contracts, Retrospective Claims for Costs, Change Procedures, Flood Defence Services
Contract Law Construction Law Interpretation of PFI Contracts Retrospective Claims for Costs Change Procedures Flood Defence Services

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Parties

Pevensey Coastal Defence Limited

Claimant

Environment Agency

Defendant

Procedural Posture

Part 8 Proceedings / Judgment on Point of Contract Construction

Legal Issues

  1. 1 Whether Schedule 12 of the FDSA permits PCDL to claim for Relevant Cost on a retrospective basis in respect of material increase in storm events
  2. 2 Proper construction of 'Relevant Cost' and 'Proposal' under the Agreement

Ratio Decidendi

Schedule 12 of the FDSA permits PCDL to claim for Relevant Cost on a retrospective basis in respect of a material increase in storm events, as the definition of Relevant Cost and the terms of Schedule 12 (particularly paragraph 4.6) support recovery of costs already incurred during the relevant period, and the Agreement does not contain clear words limiting recovery to future costs only.

Court Disposition

Claimant's construction accepted; retrospective claim permitted

Orders

  • Schedule 12 permits PCDL to claim for Relevant Cost on a retrospective basis for the second decade of the FDSA if a material increase in storm events is established.
  • Costs and consequential matters to be determined at a further hearing if not agreed.