CLS Civil Engineering Limited v WJG Evans and Sons

CLS Civil Engineering Limited v WJG Evans and Sons

The parties' relationship was governed by the Letter of Intent and its revisions, which capped the Claimant's liability at £1,100,000. There was no agreement on JCT terms. The Defendant repeatedly accepted the cap, both expressly and by conduct. The estoppel arguments advanced by the Defendant had no real prospect of success. There were no substantial disputes of fact preventing determination under Part 8.

Parties
Claimant: CLS Civil Engineering Limited; Defendant: WJG Evans and Sons (a partnership)
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil (construction Dispute) / Judgment on Part 8 Application
Outcome
Declarations granted in favour of Claimant; parties invited to agree order.
Legal Topics
Letters of Intent, Contractual Liability Cap, Estoppel, Summary Judgment Procedure
Contract Law Construction Law Letters of Intent Contractual Liability Cap Estoppel Summary Judgment Procedure

Case Brief

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Parties

CLS Civil Engineering Limited

Claimant

WJG Evans and Sons (a partnership)

Defendant

Procedural Posture

Civil (construction Dispute) / Judgment on Part 8 Application

Legal Issues

  1. 1 Whether the parties' relationship was governed by the Letter of Intent and its revisions or by JCT terms
  2. 2 Whether the Claimant's liability was capped at £1,100,000
  3. 3 Whether the matter was suitable for determination under Part 8 procedure

Ratio Decidendi

The parties' relationship was governed by the Letter of Intent and its revisions, which capped the Claimant's liability at £1,100,000. There was no agreement on JCT terms. The Defendant repeatedly accepted the cap, both expressly and by conduct. The estoppel arguments advanced by the Defendant had no real prospect of success. There were no substantial disputes of fact preventing determination under Part 8.

Court Disposition

Declarations granted in favour of Claimant; parties invited to agree order.

Orders

  • The parties' relationship was not governed by JCT terms.
  • The Claimant’s liability in respect of the Works is limited to £1,100,000 plus VAT in accordance with the Letter of Intent dated 14th August 2021 and its revisions provided on 20th November 2021, 7th March 2022, 4th July 2022 and 18th October 2022.