Mul v Hutton Construction Ltd

Mul v Hutton Construction Ltd

An 'appropriate deduction' under Clause 2.30 means a deduction reasonable in all the circumstances, which may be calculated by reference to contract rates, cost to contractor, reasonable cost to employer of engaging another contractor, or particular factual circumstances and expert evidence; the contract does not exclude employer's right to damages unless clear words are used.

Parties
Claimant: Oksana Mul; Defendant: Hutton Construction Limited
Jurisdiction
England and Wales
Judgment Date
05 June 2014
Procedural Posture
Civil / Ruling on Preliminary Issues
Outcome
Preliminary issues decided in favour of the Claimant.
Legal Topics
Defects Liability, Appropriate Deduction, Rectification Period, Mitigation of Loss, Damages for Breach of Contract
Construction Law Contract Law Defects Liability Appropriate Deduction Rectification Period Mitigation of Loss Damages for Breach of Contract

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Parties

Oksana Mul

Claimant

Hutton Construction Limited

Defendant

Procedural Posture

Civil / Ruling on Preliminary Issues

Legal Issues

  1. 1 Interpretation of 'appropriate deduction' under Clause 2.30 of JCT Intermediate Form of Contract (2005)
  2. 2 Basis for calculation of deduction for defects not remedied by contractor
  3. 3 Employer's entitlement to damages for defects

Ratio Decidendi

An 'appropriate deduction' under Clause 2.30 means a deduction reasonable in all the circumstances, which may be calculated by reference to contract rates, cost to contractor, reasonable cost to employer of engaging another contractor, or particular factual circumstances and expert evidence; the contract does not exclude employer's right to damages unless clear words are used.

Court Disposition

Preliminary issues decided in favour of the Claimant.

Orders

  • Costs of and occasioned by the preliminary issues hearing to be Claimant’s costs in the case on a standard basis; if Claimant succeeds in proceedings and secures an order for costs, these costs will follow in her favour.