Walter Lilly & Company Ltd v Mackay & Anor

Walter Lilly & Company Ltd v Mackay & Anor

WLC is entitled to an extension of time through to 7 July 2008 due to employer-responsible delays, including late instructions and variations. WLC's loss and expense claims, though global in nature, are recoverable as the delays and additional costs were caused by employer-responsible events and properly evidenced. WLC is not liable for the major defects (ABW, Light Wall, Courtyard Sliding Doors) as no design responsibility was transferred. DMW's counterclaims for defects are extinguished or reduced by the settlement sums received from third parties. WLC is entitled to payment for omitted works, sub-contractor settlements, and interest on late payments at the contractual rate.

Parties
Claimant: Walter Lilly & Company Limited; Defendant: Giles Patrick Cyril Mackay; Defendant: DMW Developments Limited
Jurisdiction
England and Wales
Judgment Date
11 July 2012
Procedural Posture
Civil (construction Dispute) / Judgment After Full Trial
Outcome
Judgment for the claimant (WLC)
Legal Topics
Extensions of Time, Loss and Expense Claims, Global Claims, Concurrent Delay, Design Responsibility, Liquidated Damages, Defects Liability, Settlement Credits

Case Brief

Summary, issues, holding and outcome

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Parties

Walter Lilly & Company Limited

Claimant

Giles Patrick Cyril Mackay

Defendant

DMW Developments Limited

Defendant

Procedural Posture

Civil (construction Dispute) / Judgment After Full Trial

  1. 1 Whether the claimant is entitled to extensions of time for delays caused by the employer and its design team.
  2. 2 Whether the claimant is entitled to recover loss and expense for delay and disruption, including global claims.
  3. 3 Whether the claimant is liable for alleged defects (ABW, Light Wall, Courtyard Sliding Doors, etc).

Ratio Decidendi

WLC is entitled to an extension of time through to 7 July 2008 due to employer-responsible delays, including late instructions and variations. WLC's loss and expense claims, though global in nature, are recoverable as the delays and additional costs were caused by employer-responsible events and properly evidenced. WLC is not liable for the major defects (ABW, Light Wall, Courtyard Sliding Doors) as no design responsibility was transferred. DMW's counterclaims for defects are extinguished or reduced by the settlement sums received from third parties. WLC is entitled to payment for omitted works, sub-contractor settlements, and interest on late payments at the contractual rate.

Court Disposition

Judgment for the claimant (WLC)

Orders

  • WLC awarded £2,330,666.26 (exclusive of contractual interest) against DMW.
  • DMW's counterclaims for defects and liquidated damages dismissed or reduced by settlement credits.