Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd [2017] EWHC 2299 (TCC) (26 July 2017)

Imperial Chemical Industries Ltd v Merit Merrell Technology Ltd [2017] EWHC 2299 (TCC) (26 July 2017)

MMT is entitled to its costs of the liability trial on an indemnity basis, less 5% to reflect ICI's success on the restitutionary issue, due to ICI's unreasonable conduct and pursuit of exceptionally weak repudiation claims. Amendments to introduce new heads of loss are allowed only to the extent they relate to quantum, not liability, and only those identified by the court are permitted.

Citation
[2017] EWHC 2299 (TCC)
Parties
Claimant: Imperial Chemical Industries Ltd; Defendant: Merit Merrell Technology Ltd
Jurisdiction
England and Wales
Judgment Date
26 July 2017
Procedural Posture
Commercial Construction Dispute / Post Liability Trial, Costs and Amendment Applications
Outcome
MMT awarded costs of the liability trial on an indemnity basis, subject to a 5% reduction; limited permission granted to amend pleadings for quantum issues only.
Legal Topics
Repudiatory Breach of Contract, Costs Orders, Indemnity Costs, Amendment of Pleadings, Quantum of Damages
Commercial Law Construction Law Civil Procedure Repudiatory Breach of Contract Costs Orders Indemnity Costs Amendment of Pleadings Quantum of Damages

Case Brief

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Parties

Imperial Chemical Industries Ltd

Claimant

Merit Merrell Technology Ltd

Defendant

Procedural Posture

Commercial Construction Dispute / Post Liability Trial, Costs and Amendment Applications

Legal Issues

  1. 1 Whether costs should be awarded immediately after the liability trial and on what basis (standard or indemnity)
  2. 2 Whether the defendant should be permitted to amend its pleadings to introduce new heads of loss at the quantum stage

Ratio Decidendi

MMT is entitled to its costs of the liability trial on an indemnity basis, less 5% to reflect ICI's success on the restitutionary issue, due to ICI's unreasonable conduct and pursuit of exceptionally weak repudiation claims. Amendments to introduce new heads of loss are allowed only to the extent they relate to quantum, not liability, and only those identified by the court are permitted.

Court Disposition

MMT awarded costs of the liability trial on an indemnity basis, subject to a 5% reduction; limited permission granted to amend pleadings for quantum issues only.

Orders

  • MMT to recover 95% of its costs of the liability trial on an indemnity basis, subject to detailed assessment.
  • Permission granted to MMT to amend its pleadings to introduce certain new heads of loss for the quantum trial, as specified by the court.