Alstom Combined Cycles Ltd v. Henry Boot Plc [2001] EWHC Technology 428 (1st May, 2001)

Alstom Combined Cycles Ltd v. Henry Boot Plc [2001] EWHC Technology 428 (1st May, 2001)

There are arguable defences available to both Boot and Aegon that overlap with issues already referred to arbitration, including whether Alstom is entitled to liquidated damages and the correct date for the Defects Correction Certificate. It is proportionate and in the interests of justice to stay both actions pending the outcome of the relevant arbitration proceedings.

Citation
[2001] EWHC Technology 428
Parties
Claimant: Alstom Combined Cycles Ltd.; Defendant: Henry Boot Construction Ltd.; Defendant: Henry Boot Plc; Defendant: Aegon Insurance Company (UK) Ltd.
Jurisdiction
England and Wales
Procedural Posture
Commercial Construction Contract Dispute / Interlocutory Applications for Summary Judgment and Stay of Proceedings
Outcome
Stay of proceedings granted in both actions; Aegon's application for summary judgment dismissed.
Legal Topics
Guarantee Liability, Performance Bonds, Liquidated Damages, Extensions of Time, Stay of Proceedings, Summary Judgment, Arbitration Overlap
Construction Law Contract Law Arbitration Guarantee Liability Performance Bonds Liquidated Damages Extensions of Time Stay of Proceedings +2 more

Case Brief

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Parties

Alstom Combined Cycles Ltd.

Claimant

Henry Boot Construction Ltd.

Defendant

Henry Boot Plc

Defendant

Aegon Insurance Company (UK) Ltd.

Defendant

Procedural Posture

Commercial Construction Contract Dispute / Interlocutory Applications for Summary Judgment and Stay of Proceedings

Legal Issues

  1. 1 Whether Aegon is discharged from liability under the Bond upon issue of the Defects Correction Certificate
  2. 2 Whether Boot is liable under the Guarantee for liquidated damages claimed by Alstom
  3. 3 Whether proceedings should be stayed pending arbitration of overlapping issues

Ratio Decidendi

There are arguable defences available to both Boot and Aegon that overlap with issues already referred to arbitration, including whether Alstom is entitled to liquidated damages and the correct date for the Defects Correction Certificate. It is proportionate and in the interests of justice to stay both actions pending the outcome of the relevant arbitration proceedings.

Court Disposition

Stay of proceedings granted in both actions; Aegon's application for summary judgment dismissed.

Orders

  • Proceedings in both the First Action and Second Action are stayed until the final resolution of the relevant arbitration proceedings.
  • Aegon's application for summary judgment is dismissed.