Great Eastern Hotel Company Ltd v John Laing Construction Ltd & Anor

Great Eastern Hotel Company Ltd v John Laing Construction Ltd & Anor

Laing breached its obligations under the CMA by failing to manage and coordinate the project to the standard of a competent construction manager, particularly in relation to the temporary roof, infill block, scoping of trade packages, and accurate reporting. These breaches were the effective cause of critical delays and resultant losses, including loss of profit, additional professional fees, and increased costs. GEH is entitled to recover damages for these losses, subject to deductions for items not proven or not caused by Laing's breaches.

Parties
Claimant: Great Eastern Hotel Company Ltd; Defendant: John Laing Construction Ltd; Defendant: Laing Construction PLC
Jurisdiction
England and Wales
Judgment Date
24 February 2005
Procedural Posture
Civil (construction Contract Dispute) / Judgment After Full Trial
Outcome
Judgment for the Claimant (GEH) against the Defendants (Laing) for damages for breach of contract.
Legal Topics
Breach of Construction Management Agreement, Damages for Delay, Professional Negligence, Misrepresentation, Causation of Loss, Quantum of Damages
Contract Law Construction Law Breach of Construction Management Agreement Damages for Delay Professional Negligence Misrepresentation Causation of Loss Quantum of Damages

Case Brief

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Parties

Great Eastern Hotel Company Ltd

Claimant

John Laing Construction Ltd

Defendant

Laing Construction PLC

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Judgment After Full Trial

Legal Issues

  1. 1 Whether Laing breached its obligations under the Construction Management Agreement (CMA)
  2. 2 Whether Laing's breaches caused the delays and losses claimed by GEH
  3. 3 Whether Laing was liable for misrepresentation

Ratio Decidendi

Laing breached its obligations under the CMA by failing to manage and coordinate the project to the standard of a competent construction manager, particularly in relation to the temporary roof, infill block, scoping of trade packages, and accurate reporting. These breaches were the effective cause of critical delays and resultant losses, including loss of profit, additional professional fees, and increased costs. GEH is entitled to recover damages for these losses, subject to deductions for items not proven or not caused by Laing's breaches.

Court Disposition

Judgment for the Claimant (GEH) against the Defendants (Laing) for damages for breach of contract.

Orders

  • Laing to pay GEH damages for delay, disruption, loss of profit, additional professional fees, and miscellaneous costs as quantified in the judgment, subject to final calculation by quantum experts.
  • Claims based on misrepresentation and certain professional fees dismissed.