Doosan Enpure Ltd v Interserve Construction Ltd [2019] EWHC 2497 (TCC) (25 September 2019)

Doosan Enpure Ltd v Interserve Construction Ltd [2019] EWHC 2497 (TCC) (25 September 2019)

On the proper construction of the JVA, interim payments to JV partners are to be made in respect of certified Works Part Costs as shown on Interim Cost Statements, and deductions or suspensions can only occur with the unanimous agreement of the JV Committee. The pain/gain share and internal change adjustments are to be dealt with at the final reckoning, not at the interim payment stage. Interserve had no defence to Doosan's claim for declaratory relief and payment from the JV Account.

Citation
[2019] EWHC 2497 (TCC)
Parties
Claimant: Doosan Enpure Limited; Defendant: Interserve Construction Limited
Jurisdiction
England and Wales
Judgment Date
25 September 2019
Procedural Posture
Commercial Construction Dispute (summary Judgment Application) / Summary Judgment in Technology and Construction Court
Outcome
Summary judgment granted in favour of Doosan Enpure Limited.
Legal Topics
Joint Venture Agreements, Interim Payments, Contractual Construction, Pain/gain Share Mechanisms, Summary Judgment
Commercial Law Construction Law Contract Law Joint Venture Agreements Interim Payments Contractual Construction Pain/gain Share Mechanisms Summary Judgment

Case Brief

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Parties

Doosan Enpure Limited

Claimant

Interserve Construction Limited

Defendant

Procedural Posture

Commercial Construction Dispute (summary Judgment Application) / Summary Judgment in Technology and Construction Court

Legal Issues

  1. 1 Whether interim payments under the JVA can be suspended unilaterally by one JV partner
  2. 2 Proper construction of clause 8.6 of the JVA regarding interim payments
  3. 3 Whether principles in Schedule 4 of the JVA apply to interim payments or only to final reckoning

Ratio Decidendi

On the proper construction of the JVA, interim payments to JV partners are to be made in respect of certified Works Part Costs as shown on Interim Cost Statements, and deductions or suspensions can only occur with the unanimous agreement of the JV Committee. The pain/gain share and internal change adjustments are to be dealt with at the final reckoning, not at the interim payment stage. Interserve had no defence to Doosan's claim for declaratory relief and payment from the JV Account.

Court Disposition

Summary judgment granted in favour of Doosan Enpure Limited.

Orders

  • Declaration that interim payments can only be suspended with unanimous agreement of the JV Committee.
  • Declaration that Interserve is in breach of the JVA by refusing to authorise release of interim payments to Doosan.