Mowlem Plc (t/a Mowlem Marine) v Stena Line Ports Ltd

Mowlem Plc (t/a Mowlem Marine) v Stena Line Ports Ltd

The parties' relationship was governed by the letter of intent dated 4 July 2003, which capped Stena's liability to pay Mowlem at £10 million for all works. There was no waiver, estoppel, or implied term permitting payment beyond this cap. No quantum meruit claim arises where a contract governs payment. The date of 18 July 2003 was not a temporal limit on the cap but an estimate of programme duration.

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 (construction/contract) / Judgment After Trial
Outcome
Claim dismissed; counterclaim allowed
Legal Topics
Letters of Intent, Quantum Meruit, Contractual Interpretation, Waiver, Estoppel
Contract Law Construction Law Letters of Intent Quantum Meruit Contractual Interpretation Waiver Estoppel

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Parties

Mowlem PLC (trading as Mowlem Marine)

Claimant

Stena Line Ports Limited

Defendant

Procedural Posture

Civil (construction/contract) / 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 letter of intent dated 4 July 2003, which capped Stena's liability to pay Mowlem at £10 million for all works. There was no waiver, estoppel, or implied term permitting payment beyond this cap. No quantum meruit claim arises where a contract governs payment. The date of 18 July 2003 was not a temporal limit on the cap but an estimate of programme duration.

Court Disposition

Claim dismissed; counterclaim allowed

Orders

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