Pierce Design International Ltd v Johnston & Anor [2007] EWHC 1691 (TCC) (17 July 2007)

Pierce Design International Ltd v Johnston & Anor [2007] EWHC 1691 (TCC) (17 July 2007)

Clause 27.6.5.1 of the JCT contract complies with Section 111 of the Housing Grants Construction & Regeneration Act 1996 as determined by the House of Lords in Melville Dundas, and the proviso to that clause operates such that, where sums properly due have not been paid and no withholding notice was served, the employer cannot rely on cross-claims to resist payment; summary judgment is therefore granted for the sums claimed.

Citation
[2007] EWHC 1691 (TCC)
Parties
Claimant: Pierce Design International Ltd.; Defendant: Mark Johnston and Another
Jurisdiction
England and Wales
Judgment Date
17 July 2007
Procedural Posture
Summary Judgment Application / Judgment on CPR Part 24 Application
Outcome
Summary judgment granted for the Claimant.
Legal Topics
Interim Payments, Withholding Notices, Determination of Contract, Summary Judgment, JCT Standard Form, Housing Grants Construction & Regeneration Act 1996
Construction Law Contract Law Interim Payments Withholding Notices Determination of Contract Summary Judgment JCT Standard Form Housing Grants Construction & Regeneration Act 1996

Case Brief

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Parties

Pierce Design International Ltd.

Claimant

Mark Johnston and Another

Defendant

Procedural Posture

Summary Judgment Application / Judgment on CPR Part 24 Application

Legal Issues

  1. 1 Whether Clause 27.6.5.1 of the JCT contract is compliant with Section 111 of the Housing Grants Construction & Regeneration Act 1996 in the absence of insolvency or impossibility of serving a withholding notice
  2. 2 Whether the proviso to Clause 27.6.5.1 operates to prevent the employer from resisting payment of sums due where no withholding notice was served

Ratio Decidendi

Clause 27.6.5.1 of the JCT contract complies with Section 111 of the Housing Grants Construction & Regeneration Act 1996 as determined by the House of Lords in Melville Dundas, and the proviso to that clause operates such that, where sums properly due have not been paid and no withholding notice was served, the employer cannot rely on cross-claims to resist payment; summary judgment is therefore granted for the sums claimed.

Court Disposition

Summary judgment granted for the Claimant.

Orders

  • Defendants to pay Claimant £93,460.33 plus interest.