Gibraltar Residential Properties Ltd v Gibralcon 2004 SA

Gibraltar Residential Properties Ltd v Gibralcon 2004 SA

The court found that GRPL validly terminated Gibralcon's contract under clause 27.2.2 after proper service of notice and expiry of the 14-day period, that GRPL is entitled to LADs (capped at 5% of contract sum), overpayment, and additional contractor costs, and that the adjudicator in Adjudication No. 2 erred by not setting off overvalued variations, so no sum was due to Gibralcon. Declaratory relief was granted, with interest at 1.5%.

Parties
Claimant: Gibraltar Residential Properties Ltd; Defendant: Gibralcon 2004 SA
Jurisdiction
England and Wales
Judgment Date
30 October 2015
Procedural Posture
Civil (construction Dispute) / Judgment After Trial (defendant Absent)
Outcome
Declaratory relief granted in favour of GRPL; costs awarded to GRPL; proceedings stayed except for steps to prove debt in Spanish insolvency.
Legal Topics
Termination of Contract, Liquidated and Ascertained Damages (lads), Adjudication Decisions, Jurisdiction, Declaratory Relief, Interest on Damages
Construction Law Contract Law Insolvency Termination of Contract Liquidated and Ascertained Damages (lads) Adjudication Decisions Jurisdiction Declaratory Relief +1 more

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Parties

Gibraltar Residential Properties Ltd

Claimant

Gibralcon 2004 SA

Defendant

Procedural Posture

Civil (construction Dispute) / Judgment After Trial (defendant Absent)

Legal Issues

  1. 1 Whether the termination of Gibralcon's contract was valid under clause 27.2.2
  2. 2 Whether GRPL is entitled to liquidated and ascertained damages (LADs) and overpayment recovery
  3. 3 Whether the adjudicator's decision in Adjudication No. 2 was correct

Ratio Decidendi

The court found that GRPL validly terminated Gibralcon's contract under clause 27.2.2 after proper service of notice and expiry of the 14-day period, that GRPL is entitled to LADs (capped at 5% of contract sum), overpayment, and additional contractor costs, and that the adjudicator in Adjudication No. 2 erred by not setting off overvalued variations, so no sum was due to Gibralcon. Declaratory relief was granted, with interest at 1.5%.

Court Disposition

Declaratory relief granted in favour of GRPL; costs awarded to GRPL; proceedings stayed except for steps to prove debt in Spanish insolvency.

Orders

  • Declaration that Adjudication No. 2 decision was wrong; no sum due to Gibralcon.
  • Declaration of GRPL's entitlement to extensions of time as specified.