Mowlem Plc (t/a Mowlem Marine) v Stena Line Ports Ltd [2004] EWHC 2206 (TCC) (06 October 2004)

Mowlem Plc (t/a Mowlem Marine) v Stena Line Ports Ltd [2004] EWHC 2206 (TCC) (06 October 2004)

The parties' relationship was governed by the final letter of intent dated 4 July 2003, which imposed a £10 million cap on Stena's payment obligation for all works, including variations and works after 18 July 2003. There was no waiver, estoppel, or conduct by Stena that displaced the cap. Quantum meruit was not...

Source-derived case information.

Citation
[2004] EWHC 2206 (TCC)
Parties
Claimant: Mowlem Plc (trading as Mowlem Marine); Defendant: Stena Line Ports Limited
Jurisdiction
England and Wales
Judgment Date
06 October 2004
Procedural Posture
Civil (technology and Construction Court) / Judgment After Trial
Outcome
Claim dismissed; counterclaim succeeded.
Legal Topics
Letters of Intent, Quantum Meruit, Contractual Interpretation, Waiver, Estoppel, Restitution
Contract Law Construction Law Letters of Intent Quantum Meruit Contractual Interpretation Waiver Estoppel Restitution

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Parties

Mowlem Plc (trading as Mowlem Marine)

Claimant

Stena Line Ports Limited

Defendant

Procedural Posture

Civil (technology and Construction Court) / Judgment After Trial

Legal Issues

  1. 1 Whether Mowlem is entitled to be paid a reasonable sum for works carried out beyond the limits of the final letter of intent dated 4 July 2003;
  2. 2 Whether the £10 million cap in the letter of intent applies to all works, including those after 18 July 2003;
  3. 3 Whether Stena waived or is estopped from relying on the £10 million cap;

Ratio Decidendi

The parties' relationship was governed by the final letter of intent dated 4 July 2003, which imposed a £10 million cap on Stena's payment obligation for all works, including variations and works after 18 July 2003. There was no waiver, estoppel, or conduct by Stena that displaced the cap. Quantum meruit was not available as a contract subsisted covering the works.

Court Disposition

Claim dismissed; counterclaim succeeded.

Orders

  • Declaration that Mowlem's entitlement to payment for the Works is subject to a maximum of £10 million.