London Underground Ltd. v Pillar Broadway Ltd.

London Underground Ltd. v Pillar Broadway Ltd.

LUL is entitled to payment from Pillar for sums proven to be properly incurred under clause 19.1 of the Development Agreement, even if the invoice included unproven items, provided sufficient breakdown and supporting documentation were supplied to satisfy clause 19.3. Compliance with clause 19.3 is not a strict...

Source-derived case information.

Parties
Claimant: London Underground Limited; Defendant: Pillar Broadway Limited
Jurisdiction
England and Wales
Judgment Date
23 January 2003
Procedural Posture
Civil / Judgment
Outcome
Judgment for the Claimant in part
Legal Topics
Construction of Contract Clauses, Payment Obligations, Proof of Incurred Costs, Breakdown of Invoices
Contract Law Commercial Law Construction of Contract Clauses Payment Obligations Proof of Incurred Costs Breakdown of Invoices

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Parties

London Underground Limited

Claimant

Pillar Broadway Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether costs claimed in the invoice were 'properly incurred' under clause 19.1 of the Development Agreement
  2. 2 Whether compliance with clause 19.3 (breakdown and supporting invoices) is a condition precedent to payment
  3. 3 What constitutes a sufficient 'breakdown' under clause 19.3

Ratio Decidendi

LUL is entitled to payment from Pillar for sums proven to be properly incurred under clause 19.1 of the Development Agreement, even if the invoice included unproven items, provided sufficient breakdown and supporting documentation were supplied to satisfy clause 19.3. Compliance with clause 19.3 is not a strict condition precedent to payment, and partial recovery is permitted for proven costs.

Court Disposition

Judgment for the Claimant in part

Orders

  • Pillar Broadway Limited to pay London Underground Limited £244,776.55 in respect of proven costs claimed in the invoice