Lovell Partnerships Ltd & Anor v Merton Priory Homes

Lovell Partnerships Ltd & Anor v Merton Priory Homes

Clause 13.9 prevents further payment under the contractual machinery post-insolvency but does not extinguish accrued rights to payment; clause 13.10 preserves mutual rights and obligations accrued at the date of termination, including monetary claims, which may be pursued by adjudication, arbitration, or litigation.

Source-derived case information.

Parties
Claimant: Lovell Partnerships Limited; Claimant: Connaught Partnerships Ltd (in liquidation); Defendant: Merton Priory Homes
Jurisdiction
England and Wales
Judgment Date
23 May 2014
Procedural Posture
Civil (contractual Interpretation) / Judgment on Part 8 Claim for Declaration
Outcome
Declaration granted in favour of the Claimant; Merton's interpretation rejected.
Legal Topics
Interpretation of Payment Clauses, Effect of Insolvency on Contractual Rights, Accrued Rights Post Termination
Contract Law Insolvency Law Interpretation of Payment Clauses Effect of Insolvency on Contractual Rights Accrued Rights Post Termination

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Parties

Lovell Partnerships Limited

Claimant

Connaught Partnerships Ltd (in liquidation)

Claimant

Merton Priory Homes

Defendant

Procedural Posture

Civil (contractual Interpretation) / Judgment on Part 8 Claim for Declaration

Legal Issues

  1. 1 Proper interpretation of clause 13.9 of the ACA Standard Form of Contract for Term Partnering 2005 (as amended)
  2. 2 Whether the Service Provider is entitled to further payment after insolvency or liquidation
  3. 3 Effect of clause 13.10 on accrued rights to payment

Ratio Decidendi

Clause 13.9 prevents further payment under the contractual machinery post-insolvency but does not extinguish accrued rights to payment; clause 13.10 preserves mutual rights and obligations accrued at the date of termination, including monetary claims, which may be pursued by adjudication, arbitration, or litigation.

Court Disposition

Declaration granted in favour of the Claimant; Merton's interpretation rejected.

Orders

  • Declaration that 'any further payment' in clause 13.9 refers to payments under the contractual machinery and does not prevent the Service Provider from pursuing accrued rights by adjudication, arbitration, or litigation.
  • Parties to be heard on the precise form of relief and costs if not agreed.