Carillion JM Ltd v Phi Group Ltd

Carillion JM Ltd v Phi Group Ltd

Both RWC and Phi were in breach of contract and duty by failing to identify and address deep-seated instability and failing to properly review and check design assumptions. These breaches caused the losses claimed, including the need for extensive remedial works and consequential disruption costs. Carillion was not contributorily negligent as it reasonably relied on its consultants. Damages were assessed on a reasonable basis, and contribution was apportioned 60% to Phi and 40% to RWC.

Parties
Claimant: Carillion JM Limited; Defendant: Phi Group Limited; Defendant/third Party: Robert West Consulting Limited
Jurisdiction
England and Wales
Judgment Date
15 June 2011
Procedural Posture
Civil Engineering/construction Dispute / Judgment After Full Trial
Outcome
Judgment for Carillion against RWC; contribution apportioned 60% to Phi and 40% to RWC.
Legal Topics
Breach of Contract, Negligence, Contribution Proceedings, Damages, Indemnity, Quantum Assessment
Construction Law Contract Law Professional Negligence Breach of Contract Negligence Contribution Proceedings Damages Indemnity +1 more

Case Brief

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Parties

Carillion JM Limited

Claimant

Phi Group Limited

Defendant

Robert West Consulting Limited

Defendant/third Party

Procedural Posture

Civil Engineering/construction Dispute / Judgment After Full Trial

Legal Issues

  1. 1 Whether RWC and Phi were in breach of contractual and professional duties in the design and supervision of soil nailing works at Wembley Depot
  2. 2 Whether such breaches caused the losses claimed by Carillion
  3. 3 Whether Carillion was contributorily negligent

Ratio Decidendi

Both RWC and Phi were in breach of contract and duty by failing to identify and address deep-seated instability and failing to properly review and check design assumptions. These breaches caused the losses claimed, including the need for extensive remedial works and consequential disruption costs. Carillion was not contributorily negligent as it reasonably relied on its consultants. Damages were assessed on a reasonable basis, and contribution was apportioned 60% to Phi and 40% to RWC.

Court Disposition

Judgment for Carillion against RWC; contribution apportioned 60% to Phi and 40% to RWC.

Orders

  • RWC to pay Carillion £3,250,863.93 in damages (net of Phi's settlement and interest adjustments)
  • Phi to contribute 60% of total damages, less amount already paid in settlement