William Hare Ltd v Shepherd Construction Ltd [2009] EWHC 1603 (TCC) (25 June 2009)

William Hare Ltd v Shepherd Construction Ltd [2009] EWHC 1603 (TCC) (25 June 2009)

Clause 32.2 of the subcontract only covers insolvency events expressly listed, namely administration order by court under Part II of the Insolvency Act 1986. Since Trinity's administration was achieved via self-certifying route under Schedule B1 and not by court order, Shepherd's withholding notices are invalid and Hare is entitled to payment.

Citation
[2009] EWHC 1603 (TCC)
Parties
Claimant: William Hare Limited; Defendant: Shepherd Construction Limited; Claimant: CR Reynolds
Jurisdiction
England and Wales
Judgment Date
25 June 2009
Procedural Posture
Construction Contract Dispute (cpr Part 8 Claim) / Judgment at First Instance
Outcome
Declarations granted in favour of Hare; Shepherd's withholding notices declared invalid; Hare entitled to payment.
Legal Topics
Pay When Paid Clauses, Contractual Interpretation, Statutory Incorporation, Contra Proferentem, Effect of Legislative Amendments
Construction Law Contract Law Insolvency Law Pay When Paid Clauses Contractual Interpretation Statutory Incorporation Contra Proferentem Effect of Legislative Amendments

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Parties

William Hare Limited

Claimant

Shepherd Construction Limited

Defendant

CR Reynolds

Claimant

Procedural Posture

Construction Contract Dispute (cpr Part 8 Claim) / Judgment at First Instance

Legal Issues

  1. 1 Whether clause 32.2 of the subcontract covers self-certifying administration under Schedule B1 of the Insolvency Act 1986
  2. 2 Whether withholding notices issued by Shepherd are valid given Trinity's insolvency route
  3. 3 Proper construction of pay when paid clause post-Enterprise Act 2002 amendments

Ratio Decidendi

Clause 32.2 of the subcontract only covers insolvency events expressly listed, namely administration order by court under Part II of the Insolvency Act 1986. Since Trinity's administration was achieved via self-certifying route under Schedule B1 and not by court order, Shepherd's withholding notices are invalid and Hare is entitled to payment.

Court Disposition

Declarations granted in favour of Hare; Shepherd's withholding notices declared invalid; Hare entitled to payment.

Orders

  • Declaration that none of the four insolvency events in clause 32.2 occurred in respect of Trinity.
  • Declaration that Shepherd's withholding notices are invalid.