Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd [2018] EWHC 1577 (TCC) (21 June 2018)

Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd [2018] EWHC 1577 (TCC) (21 June 2018)

The court held that ICI was not entitled to revisit contemporaneous agreements on valuation reached with MMT and the Project Manager, absent fraud or manifest error. The value of MMT's works was to be assessed based on those agreements and the evidence available, with ICI's counterclaim for overpayment rejected. MMT was entitled to damages for ICI's repudiatory breach, including loss of profit on instructed work, certain professional fees, and other consequential losses, but not for loss of profit on uninstructed work or rebranding costs, as these were not properly pleaded or supported by evidence.

Citation
[2018] EWHC 1577 (TCC)
Parties
Claimant: Imperial Chemical Industries Limited; Defendant: Merit Merrell Technology Limited
Jurisdiction
England and Wales
Judgment Date
21 June 2018
Procedural Posture
Construction Contract Dispute (quantum) / Judgment on Quantum Following Earlier Liability Judgment
Outcome
Judgment for the Defendant (MMT) on quantum; ICI's counterclaim for overpayment dismissed; damages awarded to MMT for wrongful repudiation.
Legal Topics
Repudiatory Breach, Quantum Meruit, Damages Assessment, Interim Payments, Project Manager's Role, Valuation of Works, Loss of Profit, Interest on Damages
Construction Law Contract Law Repudiatory Breach Quantum Meruit Damages Assessment Interim Payments Project Manager's Role Valuation of Works +2 more

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Parties

Imperial Chemical Industries Limited

Claimant

Merit Merrell Technology Limited

Defendant

Procedural Posture

Construction Contract Dispute (quantum) / Judgment on Quantum Following Earlier 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 Is MMT entitled to damages for loss of profit on uninstructed work?

Ratio Decidendi

The court held that ICI was not entitled to revisit contemporaneous agreements on valuation reached with MMT and the Project Manager, absent fraud or manifest error. The value of MMT's works was to be assessed based on those agreements and the evidence available, with ICI's counterclaim for overpayment rejected. MMT was entitled to damages for ICI's repudiatory breach, including loss of profit on instructed work, certain professional fees, and other consequential losses, but not for loss of profit on uninstructed work or rebranding costs, as these were not properly pleaded or supported by evidence.

Court Disposition

Judgment for the Defendant (MMT) on quantum; ICI's counterclaim for overpayment dismissed; damages awarded to MMT for wrongful repudiation.

Orders

  • Assessment of the value of MMT's works as at 17 February 2015 based on contemporaneous agreements and evidence.
  • Damages awarded to MMT for loss of profit on instructed work, certain professional fees, and other consequential losses.