Cleveland Bridge UK Ltd v Severfield - Rowen Structures Ltd

Cleveland Bridge UK Ltd v Severfield - Rowen Structures Ltd

CBUK was in breach of contract for failing to deliver fabricated steel in accordance with the December Programme, and was not entitled to damages for delay as it failed to prove that delays were caused by SRS. SRS was entitled to damages for proven delay and defects, but only to the extent proven and causally linked to CBUK's breaches. The net sum due to CBUK was subject to set-off for SRS's counterclaim.

Parties
Claimant: Cleveland Bridge UK Limited; Defendant: Severfield – Rowen Structures Limited (formerly Severfield-Reeve Structures Limited)
Jurisdiction
England and Wales
Judgment Date
21 December 2012
Procedural Posture
Civil (construction Contract Dispute) / Judgment After Full Trial
Outcome
Judgment for Claimant in part, with set-off for Defendant's counterclaim; liability for certain NCRs deferred for later quantification.
Legal Topics
Delay in Construction Contracts, Breach of Contract, Damages for Delay, Variation Claims, Defective Workmanship, Mitigation of Loss
Construction Law Contract Law Delay in Construction Contracts Breach of Contract Damages for Delay Variation Claims Defective Workmanship Mitigation of Loss

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 2 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Cleveland Bridge UK Limited

Claimant

Severfield – Rowen Structures Limited (formerly Severfield-Reeve Structures Limited)

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Judgment After Full Trial

Legal Issues

  1. 1 Whether CBUK was entitled to additional payment for delays and variations under the sub-contract
  2. 2 Whether SRS was entitled to set-off and counterclaim for delay and defects
  3. 3 Which programme governed the parties' obligations and liability for delay

Ratio Decidendi

CBUK was in breach of contract for failing to deliver fabricated steel in accordance with the December Programme, and was not entitled to damages for delay as it failed to prove that delays were caused by SRS. SRS was entitled to damages for proven delay and defects, but only to the extent proven and causally linked to CBUK's breaches. The net sum due to CBUK was subject to set-off for SRS's counterclaim.

Court Disposition

Judgment for Claimant in part, with set-off for Defendant's counterclaim; liability for certain NCRs deferred for later quantification.

Orders

  • CBUK entitled to £928,472.55 plus VAT, subject to set-off of £824,478.49 due to SRS for delay and defects.
  • VAT to be applied to any net balance due after set-off.