C Spencer Ltd v MW High Tech Projects UK Ltd [2019] EWHC 2547 (TCC) (02 October 2019)

C Spencer Ltd v MW High Tech Projects UK Ltd [2019] EWHC 2547 (TCC) (02 October 2019)

Where a hybrid contract contains a single payment regime that complies with or mirrors the Act for both construction and non-construction operations, a payment notice that does not separately identify sums due for construction operations is valid under the Act. MW's payment notice was valid and defeated CSL's claim for monetary relief.

Citation
[2019] EWHC 2547 (TCC)
Parties
Claimant: C Spencer Limited; Defendant: MW High Tech Projects UK Limited
Jurisdiction
England and Wales
Judgment Date
02 October 2019
Procedural Posture
Part 8 Claim / Judgment After Hearing on 1 July 2019
Outcome
Claim dismissed
Legal Topics
Payment Notices, Hybrid Contracts, Housing Grants, Construction and Regeneration Act 1996, Construction Operations, Statutory Payment Regime, Estoppel by Convention
Construction Law Contract Law Payment Notices Hybrid Contracts Housing Grants, Construction and Regeneration Act 1996 Construction Operations Statutory Payment Regime Estoppel by Convention

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Parties

C Spencer Limited

Claimant

MW High Tech Projects UK Limited

Defendant

Procedural Posture

Part 8 Claim / Judgment After Hearing on 1 July 2019

Legal Issues

  1. 1 Whether MW's payment notice was valid under the Act for a hybrid contract
  2. 2 Whether CSL is estopped from relying on its construction argument
  3. 3 Whether CSL is entitled to the notified sum in absence of a valid payment notice

Ratio Decidendi

Where a hybrid contract contains a single payment regime that complies with or mirrors the Act for both construction and non-construction operations, a payment notice that does not separately identify sums due for construction operations is valid under the Act. MW's payment notice was valid and defeated CSL's claim for monetary relief.

Court Disposition

Claim dismissed

Orders

  • CSL's claim for payment is dismissed as MW issued a valid payment notice under the Subcontract and the Act.