Leslie v Farrar Construction Limited

Leslie v Farrar Construction Limited

Farrar Construction may recover only direct labour/materials and site-specific preliminaries as build costs; not capital plant purchases or general overheads. The Framework Agreement applied to all disputed sites based on conduct, not express agreement. Mr Leslie repudiated the Framework Agreement, entitling Farrar Construction to damages for lost profit share, except for Cornlands and Moverley Way where profit share was waived. Overpayments for non-build costs are recoverable for unfinished developments but not for completed ones where profit share was agreed and paid.

Parties
Claimant: Graham Leslie; Defendant: Farrar Construction Limited
Jurisdiction
England and Wales
Judgment Date
19 January 2015
Procedural Posture
Civil / Final Judgment
Outcome
Judgment for Farrar Construction in part; judgment for Mr Leslie in part.
Legal Topics
Framework Agreement, Repudiatory Breach, Profit Share, Unjust Enrichment, Build Costs, Estoppel, Damages Assessment
Contract Law Restitution Construction Law Framework Agreement Repudiatory Breach Profit Share Unjust Enrichment Build Costs +2 more

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Parties

Graham Leslie

Claimant

Farrar Construction Limited

Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Construction of 'build costs' under the Framework Agreement
  2. 2 Application of the Framework Agreement to disputed developments
  3. 3 Termination of the Framework Agreement: mutual consent or repudiatory breach

Ratio Decidendi

Farrar Construction may recover only direct labour/materials and site-specific preliminaries as build costs; not capital plant purchases or general overheads. The Framework Agreement applied to all disputed sites based on conduct, not express agreement. Mr Leslie repudiated the Framework Agreement, entitling Farrar Construction to damages for lost profit share, except for Cornlands and Moverley Way where profit share was waived. Overpayments for non-build costs are recoverable for unfinished developments but not for completed ones where profit share was agreed and paid.

Court Disposition

Judgment for Farrar Construction in part; judgment for Mr Leslie in part.

Orders

  • Mr Leslie to pay Farrar Construction £139,428.16 net balance.
  • Mr Leslie entitled to recover £62,752.34 for overpayment on Minsthorpe and Methley.