Bluewater Energy Services BV v Mercon Steel Structures BV & Ors [2014] EWHC 2132 (TCC) (30 June 2014)

Bluewater Energy Services BV v Mercon Steel Structures BV & Ors [2014] EWHC 2132 (TCC) (30 June 2014)

Bluewater was entitled to terminate the contract under Clause 30 as Mercon was in default, failed to take action satisfactory to Bluewater (subject to the Socimer limitations), and Bluewater complied with the contractual notice and remedy provisions. The court found Bluewater's termination was valid, Mercon was not...

Source-derived case information.

Citation
[2014] EWHC 2132 (TCC)
Parties
Claimant: Bluewater Energy Services BV; Defendant: Mercon Steel Structures BV; Defendant: Mercon Holding BV; Defendant: Mercon Groep BV
Jurisdiction
England and Wales
Judgment Date
30 June 2014
Procedural Posture
Commercial Construction Dispute (final Account, Termination, Damages) / High Court (technology and Construction Court) Judgment After Trial
Outcome
Bluewater validly terminated the contract; Mercon's counterclaim for wrongful termination and lost profit dismissed; financial entitlements determined per judgment findings.
Legal Topics
Termination for Default, Repudiatory Breach, Liquidated Damages, Extensions of Time, Variation Claims, Re Measurement and Reimbursable Costs, Parent Company Guarantees
Construction Law Contract Law Commercial Law Termination for Default Repudiatory Breach Liquidated Damages Extensions of Time Variation Claims +2 more

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Summary, issues, holding and outcome

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Parties

Bluewater Energy Services BV

Claimant

Mercon Steel Structures BV

Defendant

Mercon Holding BV

Defendant

Mercon Groep BV

Defendant

Procedural Posture

Commercial Construction Dispute (final Account, Termination, Damages) / High Court (technology and Construction Court) Judgment After Trial

Legal Issues

  1. 1 Whether Bluewater validly terminated the contract or was in repudiatory breach
  2. 2 Entitlement to extensions of time and liquidated damages
  3. 3 Proper valuation of lump sum, re-measure, and reimbursable works

Ratio Decidendi

Bluewater was entitled to terminate the contract under Clause 30 as Mercon was in default, failed to take action satisfactory to Bluewater (subject to the Socimer limitations), and Bluewater complied with the contractual notice and remedy provisions. The court found Bluewater's termination was valid, Mercon was not entitled to lost profit for wrongful termination, and the parties' financial entitlements were determined by the contract's mechanisms for lump sum, re-measure, reimbursable, and variation works, subject to findings on compliance and substantiation.

Court Disposition

Bluewater validly terminated the contract; Mercon's counterclaim for wrongful termination and lost profit dismissed; financial entitlements determined per judgment findings.

Orders

  • Declaration that Bluewater validly terminated the contract under Clause 30
  • Mercon's counterclaim for wrongful termination and lost profit dismissed