Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd

Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd

MMT was not in repudiatory breach as of 17 February 2015; ICI was in repudiatory breach by instructing MMT to leave site. The contract required only dye-penetration NDT, not radiography. None of the five pleaded breaches by MMT were made out. ICI is entitled to recover any overpayment under the contract, not by restitution, but restitution would be available if not. Damages for defective work are limited to the cost to MMT of rectification. MMT is entitled to damages for ICI's repudiation. ICI's claim for project documents is moot as they were provided; no damages for late delivery are established.

Parties
Claimant: Imperial Chemical Industries Limited; Defendant: Merit Merrell Technology Limited
Jurisdiction
England and Wales
Judgment Date
12 July 2017
Procedural Posture
Civil (construction Contract Dispute) / Judgment After Split Trial on Liability
Outcome
Judgment for the Defendant (MMT) on liability; Claimant (ICI) found to have repudiated the contract; directions to be made for quantum trial.
Legal Topics
Repudiation of Contract, Defective Work, Non Destructive Testing (ndt), Project Documentation, Damages for Breach of Contract, Restitution, Role of Project Manager, Adjudication Enforcement
Construction Law Contract Law Repudiation of Contract Defective Work Non Destructive Testing (ndt) Project Documentation Damages for Breach of Contract Restitution +2 more

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Parties

Imperial Chemical Industries Limited

Claimant

Merit Merrell Technology Limited

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Judgment After Split Trial on Liability

Legal Issues

  1. 1 Whether the defendant was in repudiatory breach of contract as of 17 February 2015
  2. 2 Whether the claimant was in repudiatory breach by instructing the defendant to leave site
  3. 3 Whether the contract required radiographic NDT or only dye-penetration testing

Ratio Decidendi

MMT was not in repudiatory breach as of 17 February 2015; ICI was in repudiatory breach by instructing MMT to leave site. The contract required only dye-penetration NDT, not radiography. None of the five pleaded breaches by MMT were made out. ICI is entitled to recover any overpayment under the contract, not by restitution, but restitution would be available if not. Damages for defective work are limited to the cost to MMT of rectification. MMT is entitled to damages for ICI's repudiation. ICI's claim for project documents is moot as they were provided; no damages for late delivery are established.

Court Disposition

Judgment for the Defendant (MMT) on liability; Claimant (ICI) found to have repudiated the contract; directions to be made for quantum trial.

Orders

  • All pleaded repudiatory breaches by MMT dismissed.
  • ICI's claim for contractual termination dismissed.