Pierce Design International Ltd v Johnston & Anor

Pierce Design International Ltd v Johnston & Anor

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. The proviso to Clause 27.6.5.1 operates where sums were properly due, accrued more than 28 days before determination, and were unreasonably not paid (i.e., no withholding notice was served). Therefore, the Claimant is entitled to summary judgment for the sums claimed.

Parties
Claimant: Pierce Design International Ltd.; Defendant: Mark Johnston and Another
Jurisdiction
England and Wales
Judgment Date
17 July 2007
Procedural Posture
Civil (construction Dispute) / Summary Judgment Application
Outcome
Summary judgment granted for the Claimant
Legal Topics
Interim Payments, Withholding Notices, Contract Determination, Summary Judgment, Interpretation of JCT Contracts, Housing Grants Construction & Regeneration Act 1996
Construction Law Contract Law Interim Payments Withholding Notices Contract Determination Summary Judgment Interpretation of JCT Contracts 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

Civil (construction Dispute) / Summary Judgment Application

Legal Issues

  1. 1 Whether Clause 27.6.5.1 of the JCT contract falls foul of Section 111 of the Housing Grants Construction & Regeneration Act 1996 for allowing sums to be withheld without a withholding notice
  2. 2 Whether the proviso to Clause 27.6.5.1 operates to prevent the employer from resisting payment where sums have been unreasonably not paid

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. The proviso to Clause 27.6.5.1 operates where sums were properly due, accrued more than 28 days before determination, and were unreasonably not paid (i.e., no withholding notice was served). Therefore, the Claimant is entitled to summary judgment for the sums claimed.

Court Disposition

Summary judgment granted for the Claimant

Orders

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