Balfour Beatty Regional Construction Ltd v Van Elle Ltd

Balfour Beatty Regional Construction Ltd v Van Elle Ltd

The Sub-Contract executed between the parties in late 2013 governs all piling works, including the North Carousel, and supersedes any prior arrangements or contracts. The Sub-Contract does not incorporate Van Elle's standard terms and conditions. There was no separate binding contract for the North Carousel works constituted by the 28 May 2012 quotation and acceptance by conduct. The Letter of Intent (LOI) covered the North Carousel works as an interim contract, but was itself superseded by the Sub-Contract. Therefore, Van Elle's limitation of liability clauses do not apply.

Parties
Claimant: Balfour Beatty Regional Construction Limited; Defendant: Van Elle Limited
Jurisdiction
England and Wales
Judgment Date
31 March 2021
Procedural Posture
Civil (construction Contract Dispute) / Judgment on Preliminary Issues After Trial
Outcome
Preliminary Issue 1 determined in favour of the Claimant (BB). Preliminary Issue 2 does not arise.
Legal Topics
Contract Formation, Interpretation of Contractual Documents, Supersession of Contracts, Limitation of Liability Clauses, Letters of Intent, Sub Contractor Liability
Contract Law Construction Law Contract Formation Interpretation of Contractual Documents Supersession of Contracts Limitation of Liability Clauses Letters of Intent Sub Contractor Liability

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Parties

Balfour Beatty Regional Construction Limited

Claimant

Van Elle Limited

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Judgment on Preliminary Issues After Trial

Legal Issues

  1. 1 Whether the Sub-Contract governs the North Carousel piling works or whether a separate contract (the 28 May Contract) applies
  2. 2 Whether Van Elle's standard terms and conditions (including limitation of liability) are incorporated
  3. 3 If Van Elle's terms apply, the proper construction of limitation clauses 6.6 and 6.7

Ratio Decidendi

The Sub-Contract executed between the parties in late 2013 governs all piling works, including the North Carousel, and supersedes any prior arrangements or contracts. The Sub-Contract does not incorporate Van Elle's standard terms and conditions. There was no separate binding contract for the North Carousel works constituted by the 28 May 2012 quotation and acceptance by conduct. The Letter of Intent (LOI) covered the North Carousel works as an interim contract, but was itself superseded by the Sub-Contract. Therefore, Van Elle's limitation of liability clauses do not apply.

Court Disposition

Preliminary Issue 1 determined in favour of the Claimant (BB). Preliminary Issue 2 does not arise.

Orders

  • The Sub-Contract governs the North Carousel piling works; Van Elle's standard terms and conditions do not apply.