Southern Electricity Power Distribution PLC v OCU Modus Limited

Southern Electricity Power Distribution PLC v OCU Modus Limited

It was objectively reasonable for SEPD to replace both cable circuits in their entirety due to widespread defects, ongoing non-compliance, and risk of future failure. The adopted remedial solution, including routing along a new trench to maintain supply and minimise outage, was reasonable in light of technical risks, business interests, and legitimate pressure from the customer. The actual costs incurred were caused by Modus' breach and were reasonable; Modus failed to prove any less expensive, equally efficacious alternative.

Parties
Claimant: Southern Electricity Power Distribution PLC; Defendant: OCU Modus Limited
Jurisdiction
England and Wales
Judgment Date
27 March 2025
Procedural Posture
Civil / Judgment
Outcome
Claim allowed
Legal Topics
Measure of Damages, Defective Works, Mitigation of Loss, Causation, Remedial Options, Duty to Repair, Statutory Obligations
Contract Law Construction Law Tort Law Measure of Damages Defective Works Mitigation of Loss Causation Remedial Options +2 more

Case Brief

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Parties

Southern Electricity Power Distribution PLC

Claimant

OCU Modus Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the works carried out by OCU Modus Limited were defective under the Adoption Agreement
  2. 2 Whether SEPD's decision to replace the entire cable circuits was reasonable and recoverable
  3. 3 Whether SEPD failed to mitigate its loss by not adopting a less expensive remedial option

Ratio Decidendi

It was objectively reasonable for SEPD to replace both cable circuits in their entirety due to widespread defects, ongoing non-compliance, and risk of future failure. The adopted remedial solution, including routing along a new trench to maintain supply and minimise outage, was reasonable in light of technical risks, business interests, and legitimate pressure from the customer. The actual costs incurred were caused by Modus' breach and were reasonable; Modus failed to prove any less expensive, equally efficacious alternative.

Court Disposition

Claim allowed

Orders

  • Judgment for SEPD in the sum of £2,642,237.71 against OCU Modus Limited
  • SEPD entitled to recover reasonable costs of interim and permanent repairs