Greenore Port Ltd v Technical & General Guarantee Company Ltd

Greenore Port Ltd v Technical & General Guarantee Company Ltd

SAR repudiated contract by ceasing work and losing insurance cover; claimant accepted repudiation by engaging Norfolk. Claimant acted reasonably in rejecting defendant’s offer to complete works. Additional completion costs and liquidated damages for delay exceed bond limit. Defendant liable under performance bond up to £325,773.50.

Parties
Claimant: Greenore Port Ltd.; Defendant: Technical & General Guarantee Company Ltd.
Jurisdiction
England and Wales
Judgment Date
30 November 2006
Procedural Posture
Civil / Final Judgment
Outcome
Judgment for claimant
Legal Topics
Performance Bonds, Repudiation, Damages, Liquidated Damages, Mitigation of Loss, Termination of Contract
Construction Law Contract Law Performance Bonds Repudiation Damages Liquidated Damages Mitigation of Loss Termination of Contract

Case Brief

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Parties

Greenore Port Ltd.

Claimant

Technical & General Guarantee Company Ltd.

Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 How did SAR’s contract come to an end?
  2. 2 Is the claimant precluded from recovering losses due to rejection of defendant’s offer?
  3. 3 Is the claimant entitled to recover the difference between actual costs and notional final account?

Ratio Decidendi

SAR repudiated contract by ceasing work and losing insurance cover; claimant accepted repudiation by engaging Norfolk. Claimant acted reasonably in rejecting defendant’s offer to complete works. Additional completion costs and liquidated damages for delay exceed bond limit. Defendant liable under performance bond up to £325,773.50.

Court Disposition

Judgment for claimant

Orders

  • Defendant liable to claimant for £325,773.50 under performance bond, to be converted to Euros.
  • Counsel to agree conversion rate and interest; court to resolve any outstanding issues.