1st Formations Limited v Lapp Industries Ltd

1st Formations Limited v Lapp Industries Ltd

The defendant's application was a valid interim payment application under the Act and the Scheme. It was clear, unambiguous, and set out the sum claimed and the basis for calculation. The claimant's arguments regarding ambiguity, provisionality, and payment dates did not invalidate the application. The claimant failed to serve a valid Payment Notice or Pay Less Notice, so the notified sum was due.

Parties
Claimant: 1ST FORMATIONS LIMITED; Defendant: LAPP INDUSTRIES LTD
Jurisdiction
England and Wales
Judgment Date
19 June 2025
Procedural Posture
Civil (construction Dispute) / Judgment After Part 8 Proceedings
Outcome
Claim dismissed
Legal Topics
Interim Payment Applications, Statutory Payment Regime, Scheme for Construction Contracts, Validity of Payment Notices
Construction Law Contract Law Interim Payment Applications Statutory Payment Regime Scheme for Construction Contracts Validity of Payment Notices

Case Brief

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Parties

1ST FORMATIONS LIMITED

Claimant

LAPP INDUSTRIES LTD

Defendant

Procedural Posture

Civil (construction Dispute) / Judgment After Part 8 Proceedings

Legal Issues

  1. 1 Whether the defendant's application for payment was a valid interim payment application under the Scheme for Construction Contracts 1998 as amended
  2. 2 Whether the claimant was entitled to declarations invalidating the application and reversing the adjudicator's decision

Ratio Decidendi

The defendant's application was a valid interim payment application under the Act and the Scheme. It was clear, unambiguous, and set out the sum claimed and the basis for calculation. The claimant's arguments regarding ambiguity, provisionality, and payment dates did not invalidate the application. The claimant failed to serve a valid Payment Notice or Pay Less Notice, so the notified sum was due.

Court Disposition

Claim dismissed

Orders

  • Part 8 proceedings dismissed
  • No declarations granted to the claimant