Greenore Port Ltd v Technical & General Guarantee Company Ltd [2006] EWHC 3119 (TCC) (30 November 2006)

Greenore Port Ltd v Technical & General Guarantee Company Ltd [2006] EWHC 3119 (TCC) (30 November 2006)

SAR's contract was validly terminated under clause 63 for persistent and fundamental breach, including abandonment after loss of insurance. Claimant's rejection of defendant's offer was not unreasonable given circumstances and lack of confidence in SAR and BME. Claimant is entitled to recover under the performance bond the difference between actual completion costs and the notional final account, subject to agreed quantum. Damages for delay are recoverable per contract. No additional recovery for omitted rock dredging or loss of profits as additions and omissions approximately cancelled out.

Citation
[2006] EWHC 3119 (TCC)
Parties
Claimant: Greenore Port Ltd.; Defendant: Technical & General Guarantee Company Ltd.
Jurisdiction
England and Wales
Judgment Date
30 November 2006
Procedural Posture
Commercial Construction Dispute / Final Judgment
Outcome
Claim allowed in part
Legal Topics
Performance Bonds, Contract Termination, Damages for Delay, Quantification of Loss, Repudiation, Assignment of Debts
Construction Law Contract Law Surety Law Performance Bonds Contract Termination Damages for Delay Quantification of Loss Repudiation +1 more

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Parties

Greenore Port Ltd.

Claimant

Technical & General Guarantee Company Ltd.

Defendant

Procedural Posture

Commercial Construction Dispute / Final Judgment

Legal Issues

  1. 1 Whether SAR's contract was terminated under clause 63 or repudiated
  2. 2 Whether claimant is precluded from recovery due to rejection of defendant's offer
  3. 3 Entitlement and quantification of losses under the performance bond

Ratio Decidendi

SAR's contract was validly terminated under clause 63 for persistent and fundamental breach, including abandonment after loss of insurance. Claimant's rejection of defendant's offer was not unreasonable given circumstances and lack of confidence in SAR and BME. Claimant is entitled to recover under the performance bond the difference between actual completion costs and the notional final account, subject to agreed quantum. Damages for delay are recoverable per contract. No additional recovery for omitted rock dredging or loss of profits as additions and omissions approximately cancelled out.

Court Disposition

Claim allowed in part

Orders

  • Defendant to pay claimant €413,647 under performance bond
  • Defendant to pay contractual damages for delay