Ampleforth Abbey Trust v Turner & Townsend Project Management Ltd

Ampleforth Abbey Trust v Turner & Townsend Project Management Ltd

TTPM owed and breached a duty to exercise reasonable care and skill in procuring an executed contract for the H5 works. That breach caused the Trust to lose a real and substantial chance of recovering liquidated damages from Kier. The limitation of liability clause was unreasonable and unenforceable. Damages are assessed at two-thirds of the value of the lost opportunity. TTPM is entitled to additional fees on its counterclaim, but at a reduced amount.

Parties
Claimant: The Trustees of Ampleforth Abbey Trust; Defendant: Turner & Townsend Project Management Limited
Jurisdiction
England and Wales
Judgment Date
27 July 2012
Procedural Posture
Civil / Judgment After Full Trial
Outcome
Claim allowed in part; counterclaim allowed in part.
Legal Topics
Project Management Duties, Letters of Intent, Liquidated Damages, Limitation of Liability, Loss of a Chance, Causation, Damages Assessment
Professional Negligence Construction Law Contract Law Project Management Duties Letters of Intent Liquidated Damages Limitation of Liability Loss of a Chance +2 more

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Parties

The Trustees of Ampleforth Abbey Trust

Claimant

Turner & Townsend Project Management Limited

Defendant

Procedural Posture

Civil / Judgment After Full Trial

Legal Issues

  1. 1 Whether TTPM was negligent or in breach of contract in failing to procure an executed building contract for the H5 works.
  2. 2 Whether such breach caused loss to the Trust, specifically the loss of the opportunity to recover liquidated damages from Kier.
  3. 3 Whether TTPM could rely on a limitation of liability clause in its terms of appointment.

Ratio Decidendi

TTPM owed and breached a duty to exercise reasonable care and skill in procuring an executed contract for the H5 works. That breach caused the Trust to lose a real and substantial chance of recovering liquidated damages from Kier. The limitation of liability clause was unreasonable and unenforceable. Damages are assessed at two-thirds of the value of the lost opportunity. TTPM is entitled to additional fees on its counterclaim, but at a reduced amount.

Court Disposition

Claim allowed in part; counterclaim allowed in part.

Orders

  • Judgment for the Trust against TTPM for £226,667 in damages.
  • Judgment for TTPM on its counterclaim for £37,167.