Kivells Ltd v Torridge District Council [2019] EWHC 2846 (TCC) (31 October 2019)

Kivells Ltd v Torridge District Council [2019] EWHC 2846 (TCC) (31 October 2019)

The court found that the Agreement for Lease, including the annexed Cyril Sweett document, specified a reed bed wastewater treatment system. The Council breached this obligation by installing an activated sludge system (ASS) instead. The Council failed to establish any binding variation, waiver, or estoppel...

Source-derived case information.

Citation
[2019] EWHC 2846 (TCC)
Parties
Claimant: Kivells Limited; Defendant: Torridge District Council
Jurisdiction
England and Wales
Judgment Date
31 October 2019
Procedural Posture
Commercial Lease Dispute (technology and Construction Court) / High Court Trial Judgment
Outcome
Judgment for the Claimant in part
Legal Topics
Breach of Contract, Specification of Works, Landlord's Repair Obligations, Estoppel, Damages for Breach, Variation and Waiver of Contract, Quantum of Damages
Contract Law Landlord and Tenant Construction Law Breach of Contract Specification of Works Landlord's Repair Obligations Estoppel Damages for Breach +2 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 6 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Kivells Limited

Claimant

Torridge District Council

Defendant

Procedural Posture

Commercial Lease Dispute (technology and Construction Court) / High Court Trial Judgment

Legal Issues

  1. 1 What type of dirty water treatment system did Kivells contract for under the Agreement for Lease?
  2. 2 Was the Council in breach of contract by installing an activated sludge system (ASS) instead of a reed bed system?
  3. 3 Did the parties agree to a variation, waiver, or are Kivells estopped from insisting on a reed bed system?

Ratio Decidendi

The court found that the Agreement for Lease, including the annexed Cyril Sweett document, specified a reed bed wastewater treatment system. The Council breached this obligation by installing an activated sludge system (ASS) instead. The Council failed to establish any binding variation, waiver, or estoppel preventing Kivells from relying on the original specification. The ASS as installed was found to be defective and constituted an Inherent Defect under the Lease. Kivells were entitled to damages for increased electricity and sewerage charges resulting from the installation and operation of the ASS, but not for the cost of rectification due to lack of landlord consent for alterations.

Court Disposition

Judgment for the Claimant in part

Orders

  • Declaration that the Council was in breach of contract by failing to install a reed bed system.
  • Damages awarded to Kivells for increased electricity and sewerage charges resulting from the ASS installation.