Energy Works (Hull) Ltd v MW High Tech Projects UK Ltd & Ors [2022] EWHC 3275 (TCC) (20 December 2022)

Energy Works (Hull) Ltd v MW High Tech Projects UK Ltd & Ors [2022] EWHC 3275 (TCC) (20 December 2022)

EWH was entitled to terminate the EPC contract for contractor's default and repudiation as M+W was not entitled to an extension of time. M+W's allegations of breach by EWH were either not established or did not cause delay. EWH is entitled to liquidated damages, termination damages, and defect damages. M+W Group GmbH is liable under the parent company guarantee. M+W's counterclaim is dismissed. Outotec's liability for defects is limited to properly notified matters; most contribution claims fail except for defect 17. Outotec is entitled to milestone payments subject to abatement.

Citation
[2022] EWHC 3275 (TCC)
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
20 December 2022
Procedural Posture
Commercial Construction Dispute / Final Judgment (liability and Quantum)
Outcome
Claimant succeeds in main claims; Defendants' counterclaims mostly dismissed; Third Party partially succeeds in counterclaim for milestone payments.
Legal Topics
EPC Contracts, Termination for Default, Extension of Time, Liquidated Damages, Defects Liability, Parent Company Guarantee, Contribution Claims, Abatement, Contractual Interpretation
Construction Law Contract Law Commercial Law EPC Contracts Termination for Default Extension of Time Liquidated Damages Defects Liability +4 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

Commercial Construction Dispute / Final Judgment (liability and Quantum)

Legal Issues

  1. 1 Was EWH entitled to terminate the EPC contract for contractor's default or repudiation?
  2. 2 Was M+W entitled to an extension of time?
  3. 3 Did EWH breach its obligations regarding RDF supply and quality management?

Ratio Decidendi

EWH was entitled to terminate the EPC contract for contractor's default and repudiation as M+W was not entitled to an extension of time. M+W's allegations of breach by EWH were either not established or did not cause delay. EWH is entitled to liquidated damages, termination damages, and defect damages. M+W Group GmbH is liable under the parent company guarantee. M+W's counterclaim is dismissed. Outotec's liability for defects is limited to properly notified matters; most contribution claims fail except for defect 17. Outotec is entitled to milestone payments subject to abatement.

Court Disposition

Claimant succeeds in main claims; Defendants' counterclaims mostly dismissed; Third Party partially succeeds in counterclaim for milestone payments.

Orders

  • EWH awarded £117,195,361.27 for delay and termination claims.
  • EWH awarded £2,152,021.55 for major defect claims.