Thames Water Utilities Ltd & Anor v Heathrow Airport Ltd & Anor

Thames Water Utilities Ltd & Anor v Heathrow Airport Ltd & Anor

The expert appointed under clause 7.3.2.1 is to make a single, final, once-and-for-all determination of the bases for calculating additional costs, including the hypothetical mode of operation of the Perry Oaks site from 1989 to 2040. There is no contractual basis for distinguishing between basis and mode of operation or for periodic review or adjustment by the expert. Any disputes as to the calculation of figures are to be resolved by a chartered accountant under clause 10.4.

Parties
Claimant: Thames Water Utilities Limited; Claimant: Thames Water Limited; Defendant: Heathrow Airport Limited; Defendant: BAA Limited
Jurisdiction
England and Wales
Judgment Date
06 March 2009
Procedural Posture
Commercial Contract Dispute / Judgment on Preliminary Issue of Contract Construction
Outcome
Declaration granted in favour of Thames Water's construction
Legal Topics
Interpretation of Expert Determination Clauses, Calculation of Additional Costs Under Contract, Finality of Expert Determinations, Dispute Resolution Mechanisms
Contract Law Commercial Law Interpretation of Expert Determination Clauses Calculation of Additional Costs Under Contract Finality of Expert Determinations Dispute Resolution Mechanisms

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Parties

Thames Water Utilities Limited

Claimant

Thames Water Limited

Claimant

Heathrow Airport Limited

Defendant

BAA Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment on Preliminary Issue of Contract Construction

Legal Issues

  1. 1 Whether the expert appointed under clause 7.3.2.1 is to make a single, final determination of the bases for calculating additional costs or may provide for periodic adjustment to account for future events such as changes in legislation

Ratio Decidendi

The expert appointed under clause 7.3.2.1 is to make a single, final, once-and-for-all determination of the bases for calculating additional costs, including the hypothetical mode of operation of the Perry Oaks site from 1989 to 2040. There is no contractual basis for distinguishing between basis and mode of operation or for periodic review or adjustment by the expert. Any disputes as to the calculation of figures are to be resolved by a chartered accountant under clause 10.4.

Court Disposition

Declaration granted in favour of Thames Water's construction

Orders

  • A declaration that the expert appointed under clause 7.3.2.1 is to make a single, final determination of the bases for calculating additional costs, with no jurisdiction for periodic or annual review or adjustment.