Northern & Shell Plc v John Laing Construction Ltd.

Northern & Shell Plc v John Laing Construction Ltd.

Clause 5 of the Deed of Warranty was clear and unambiguous, fixing the effective date as the day after the certificate of practical completion. The parties intended the deed to operate retrospectively from that date, not from the date of execution. Therefore, the limitation period began to run from the day after practical completion, and the claims were statute barred when proceedings were commenced.

Parties
Appellant: Northern & Shell plc; Respondent: John Laing Construction Ltd
Jurisdiction
England and Wales
Judgment Date
16 July 2003
Procedural Posture
Civil Appeal / Appeal From Summary Judgment
Outcome
appeal dismissed
Legal Topics
Deeds of Warranty, Limitation Periods, Retrospective Effect of Contracts
Contract Law Construction Law Deeds of Warranty Limitation Periods Retrospective Effect of Contracts

Case Brief

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Parties

Northern & Shell plc

Appellant

John Laing Construction Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Summary Judgment

Legal Issues

  1. 1 When does the cause of action under the Deed of Warranty accrue for limitation purposes?
  2. 2 Does clause 5 of the Deed of Warranty operate retrospectively to fix the accrual date as the day after practical completion, or only from the date of execution of the deed?

Ratio Decidendi

Clause 5 of the Deed of Warranty was clear and unambiguous, fixing the effective date as the day after the certificate of practical completion. The parties intended the deed to operate retrospectively from that date, not from the date of execution. Therefore, the limitation period began to run from the day after practical completion, and the claims were statute barred when proceedings were commenced.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed.