Energy Works (Hull) Limited v MW High Tech Projects UK Limited & Anor

Energy Works (Hull) Limited v MW High Tech Projects UK Limited & Anor

The settlement between EWH and M+W does not preclude M+W's contribution claims or abatement defence against Outotec. Contribution claims must be proved on the basis of liability and quantum, not merely by reference to the settlement, unless the case is pleaded and tried on that basis. Most contribution claims fail for want of notification or proof of quantum, except for defect 7 (ladders), where Outotec is liable for a contribution of £20,000. Outotec's claims for variations fail for lack of proper instruction or notification. The abatement defence generally fails for lack of evidence of diminution in value, except for defect 28 (noise), where abatement is allowed in the sum of...

Parties
Claimant: Energy Works (Hull) Limited; Defendant: MW High Tech Projects UK Limited; Defendant: M+W Group GmbH; Third Party: Outotec (USA) Inc.
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil Construction/commercial / Post Trial Judgment on Outstanding Issues
Outcome
Contribution claim allowed in part; most claims dismissed; abatement allowed in part; Outotec's variation claims dismissed; enhanced interest limited to contract terms.
Legal Topics
Contribution Claims, Abatement, Contractual Variations, Defective Works, Notification Requirements, Interest on Late Payment
Contract Law Construction Law Commercial Law Contribution Claims Abatement Contractual Variations Defective Works Notification Requirements +1 more

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Parties

Energy Works (Hull) Limited

Claimant

MW High Tech Projects UK Limited

Defendant

M+W Group GmbH

Defendant

Outotec (USA) Inc.

Third Party

Procedural Posture

Civil Construction/commercial / Post Trial Judgment on Outstanding Issues

Legal Issues

  1. 1 Whether settlement between employer and main contractor precludes contribution claims or abatement defence by main contractor against subcontractor
  2. 2 Assessment of contribution claims for specific defects
  3. 3 Entitlement to abatement and its quantification

Ratio Decidendi

The settlement between EWH and M+W does not preclude M+W's contribution claims or abatement defence against Outotec. Contribution claims must be proved on the basis of liability and quantum, not merely by reference to the settlement, unless the case is pleaded and tried on that basis. Most contribution claims fail for want of notification or proof of quantum, except for defect 7 (ladders), where Outotec is liable for a contribution of £20,000. Outotec's claims for variations fail for lack of proper instruction or notification. The abatement defence generally fails for lack of evidence of diminution in value, except for defect 28 (noise), where abatement is allowed in the sum of...

Court Disposition

Contribution claim allowed in part; most claims dismissed; abatement allowed in part; Outotec's variation claims dismissed; enhanced interest limited to contract terms.

Orders

  • Outotec to pay M+W a contribution of £20,000 in respect of defect 7 (ladders)
  • M+W entitled to abate $488,746.65 from sums due to Outotec for defect 28 (noise)