Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd

Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd

The court found that ICI was not entitled to revisit or ignore contemporaneous agreements and assessments reached with MMT and the Project Manager regarding the value of works, rates, and measures. The burden of proof was on ICI to demonstrate overpayment, which it failed to do. The vast majority of ICI’s challenges were unsupported by direct evidence or contractual basis. The correct valuation of MMT’s works was determined by reference to the agreed rates, measures, and contemporaneous agreements, with only minor adjustments. Damages for repudiatory breach were awarded for professional fees, management time, and certain consequential losses, but not for liquidation costs or speculative...

Parties
Claimant: Imperial Chemical Industries Limited; Defendant: Merit Merrell Technology Limited
Jurisdiction
England and Wales
Judgment Date
21 June 2018
Procedural Posture
Civil (construction Contract Dispute) / Quantum Judgment (following Liability Judgment)
Outcome
Judgment for the Defendant (MMT) on both the final account and counterclaim; ICI’s claim for overpayment dismissed.
Legal Topics
Repudiatory Breach, Quantum Meruit, Damages, Adjudication Enforcement, Burden of Proof, Contractual Interpretation, Estoppel, Expert Evidence
Construction Law Contract Law Repudiatory Breach Quantum Meruit Damages Adjudication Enforcement Burden of Proof Contractual Interpretation +2 more

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Parties

Imperial Chemical Industries Limited

Claimant

Merit Merrell Technology Limited

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Quantum Judgment (following Liability Judgment)

Legal Issues

  1. 1 What is the value of the work carried out by MMT as at 17 February 2015?
  2. 2 What damages is MMT entitled to recover as a result of ICI’s repudiatory breach of contract?
  3. 3 How should preliminaries, PMIs, SIs, and other claims be valued under the contract?

Ratio Decidendi

The court found that ICI was not entitled to revisit or ignore contemporaneous agreements and assessments reached with MMT and the Project Manager regarding the value of works, rates, and measures. The burden of proof was on ICI to demonstrate overpayment, which it failed to do. The vast majority of ICI’s challenges were unsupported by direct evidence or contractual basis. The correct valuation of MMT’s works was determined by reference to the agreed rates, measures, and contemporaneous agreements, with only minor adjustments. Damages for repudiatory breach were awarded for professional fees, management time, and certain consequential losses, but not for liquidation costs or speculative...

Court Disposition

Judgment for the Defendant (MMT) on both the final account and counterclaim; ICI’s claim for overpayment dismissed.

Orders

  • ICI to pay MMT £2,128,094.78 (net of all set-offs and counterclaims)
  • Interest to be calculated as per agreement or further order