Mears Ltd v Costplan Services (South East) Ltd & Ors [2019] EWCA Civ 502 (29 March 2019)

Mears Ltd v Costplan Services (South East) Ltd & Ors [2019] EWCA Civ 502 (29 March 2019)

Clause 6.2.1 of the AFL deems materiality only in relation to room size, not the breach itself. Any breach of the 3% tolerance is a breach of contract, but whether it is material or substantial is a matter of fact and degree. Practical completion is not prevented by every breach; only non-trifling defects or breaches prevent certification. Irremediability of defects is irrelevant to practical completion. The appeal is dismissed; declarations sought by Mears are refused.

Citation
[2019] EWCA Civ 502
Parties
Appellant: Mears Limited; 1st Respondent: Costplan Services (South East) Limited; 2nd Respondent: Plymouth (Notte Street) Limited; 3rd Respondent: J. R. Pickstock Limited
Jurisdiction
England and Wales
Judgment Date
29 March 2019
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Practical Completion, Material Breach, Contract Interpretation, Remedies for Breach
Construction Law Contract Law Practical Completion Material Breach Contract Interpretation Remedies for Breach

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Parties

Mears Limited

Appellant

Costplan Services (South East) Limited

1st Respondent

Plymouth (Notte Street) Limited

2nd Respondent

J. R. Pickstock Limited

3rd Respondent

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether any breach of clause 6.2.1 of the Agreement for Lease (AFL) constitutes a material and substantial breach entitling Mears to terminate or preventing certification of practical completion
  2. 2 Whether practical completion can be certified where there are known material or substantial defects or breaches
  3. 3 Whether irremediable defects prevent practical completion

Ratio Decidendi

Clause 6.2.1 of the AFL deems materiality only in relation to room size, not the breach itself. Any breach of the 3% tolerance is a breach of contract, but whether it is material or substantial is a matter of fact and degree. Practical completion is not prevented by every breach; only non-trifling defects or breaches prevent certification. Irremediability of defects is irrelevant to practical completion. The appeal is dismissed; declarations sought by Mears are refused.

Court Disposition

Appeal dismissed

Orders

  • Refusal to grant Declarations 1-4 as sought by Mears
  • Declaration 5 (breach of AFL) stands; no appeal against it