Leslie v Farrar Construction Limited [2015] EWHC 58 (TCC) (19 January 2015)

Leslie v Farrar Construction Limited [2015] EWHC 58 (TCC) (19 January 2015)

The Framework Agreement entitled Farrar Construction to recover direct labour and material costs and site-specific indirect costs as build costs, but not capital acquisition costs of plant/machinery or general business overheads. The Agreement applied to developments as evidenced by conduct, not requiring express agreement for each. Mr Leslie repudiated the Agreement, entitling Farrar Construction to damages for lost profit opportunities on applicable sites. Overpayments for non-build costs were established, but Mr Leslie could only recover such sums for incomplete developments, not those already settled.

Citation
[2015] EWHC 58 (TCC)
Parties
Claimant: Mr Graham Leslie; Defendant: Farrar Construction Limited
Jurisdiction
England and Wales
Judgment Date
19 January 2015
Procedural Posture
Civil (technology and Construction Court) / Judgment After Full Trial
Outcome
Judgment for the defendant in the net sum, with partial success for both parties on specific claims.
Legal Topics
Oral Contracts, Framework Agreements, Repudiatory Breach, Unjust Enrichment, Profit Sharing, Build Costs, Set Off, Quantum Meruit
Contract Law Construction Law Restitution Oral Contracts Framework Agreements Repudiatory Breach Unjust Enrichment Profit Sharing +3 more

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Parties

Mr Graham Leslie

Claimant

Farrar Construction Limited

Defendant

Procedural Posture

Civil (technology and Construction Court) / Judgment After Full Trial

Legal Issues

  1. 1 What items are recoverable as build costs under the Framework Agreement?
  2. 2 When and to which developments does the Framework Agreement apply?
  3. 3 Whether the Framework Agreement was ended by mutual consent or by repudiatory breach?

Ratio Decidendi

The Framework Agreement entitled Farrar Construction to recover direct labour and material costs and site-specific indirect costs as build costs, but not capital acquisition costs of plant/machinery or general business overheads. The Agreement applied to developments as evidenced by conduct, not requiring express agreement for each. Mr Leslie repudiated the Agreement, entitling Farrar Construction to damages for lost profit opportunities on applicable sites. Overpayments for non-build costs were established, but Mr Leslie could only recover such sums for incomplete developments, not those already settled.

Court Disposition

Judgment for the defendant in the net sum, with partial success for both parties on specific claims.

Orders

  • Mr Leslie to pay Farrar Construction £139,428.16 as the net balance after set-offs and adjustments.
  • Mr Leslie entitled to recover £62,752.34 for overpayments on Minsthorpe and Methley.