Steria Ltd v Sigma Wireless Communications Ltd

Steria Ltd v Sigma Wireless Communications Ltd

Steria was entitled to the final payment as the delays were caused by Sigma/CAMP East's late provision of data and approvals, and the insistence on requirements outside the sub-contract scope. The liquidated damages clause was valid and not a penalty. The extension of time clause was a condition precedent, but Steria gave sufficient notice. Only one week of delay was attributable to Steria, entitling Sigma to one week's liquidated damages. Sigma's counterclaim for general damages failed due to the exclusive remedy provision and lack of causation.

Parties
Claimant: Steria Limited; Defendant: Sigma Wireless Communications Limited
Jurisdiction
England and Wales
Judgment Date
15 November 2007
Procedural Posture
Commercial Construction Dispute (sub Contract) / Final Judgment After Trial
Outcome
Judgment for claimant with set-off for one week of liquidated damages to defendant
Legal Topics
Liquidated Damages, Extension of Time, Penalty Clauses, Delay Claims, Sub Contractor Obligations, Notice Requirements
Contract Law Construction Law Commercial Law Liquidated Damages Extension of Time Penalty Clauses Delay Claims Sub Contractor Obligations +1 more

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Parties

Steria Limited

Claimant

Sigma Wireless Communications Limited

Defendant

Procedural Posture

Commercial Construction Dispute (sub Contract) / Final Judgment After Trial

Legal Issues

  1. 1 Whether the claimant is entitled to payment of the final tranche under the sub-contract
  2. 2 Whether the defendant is entitled to set off or counterclaim for liquidated or general damages for delay
  3. 3 Whether the liquidated damages clause is a penalty and thus unenforceable

Ratio Decidendi

Steria was entitled to the final payment as the delays were caused by Sigma/CAMP East's late provision of data and approvals, and the insistence on requirements outside the sub-contract scope. The liquidated damages clause was valid and not a penalty. The extension of time clause was a condition precedent, but Steria gave sufficient notice. Only one week of delay was attributable to Steria, entitling Sigma to one week's liquidated damages. Sigma's counterclaim for general damages failed due to the exclusive remedy provision and lack of causation.

Court Disposition

Judgment for claimant with set-off for one week of liquidated damages to defendant

Orders

  • Steria to recover €153,786.89 less €7,688.37 (one week liquidated damages) for a net sum of €146,098.52
  • Sigma's counterclaim for general damages dismissed