James Elliott Construction Ltd v Irish Asphalt Ltd [2014] IESC 74 (02 December 2014)

James Elliott Construction Ltd v Irish Asphalt Ltd [2014] IESC 74 (02 December 2014)

The Supreme Court held that the Clause 804 infill supplied by Irish Asphalt was not of merchantable quality nor fit for purpose as required by the contract and the Sale of Goods and Supply of Services Act 1980. The product failed multiple industry standard tests and caused pyrite heave, resulting in substantial damage. The Court found that the relevant standards were incorporated into the contract, and that breach could be established by evidence of the product's performance and testing after installation. The limitation of liability clause did not apply to exclude liability for the type of loss suffered. Irish Asphalt was liable for the costs of remediation incurred by Elliott Construction.

Citation
[2014] IESC 74
Parties
Plaintiff/respondent: James Elliott Construction Limited; Defendant/appellant: Irish Asphalt Limited
Jurisdiction
Ireland
Judgment Date
02 December 2014
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court
Outcome
Appeal dismissed. Judgment for Elliott Construction.
Legal Topics
Implied Terms, Merchantable Quality, Fitness for Purpose, Sale of Goods, Limitation of Liability, Product Standards, Pyrite Heave, Breach of Contract
Contract Law Construction Law European Union Law Implied Terms Merchantable Quality Fitness for Purpose Sale of Goods Limitation of Liability +3 more

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Parties

James Elliott Construction Limited

Plaintiff/respondent

Irish Asphalt Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the Clause 804 infill supplied by Irish Asphalt breached contractual and statutory implied terms of merchantability and fitness for purpose under the Sale of Goods and Supply of Services Act 1980; Whether the product met the relevant Irish and European standards; Whether liability was limited by contract; Whether findings of breach based on post-delivery testing were permissible under Irish and EU law.

Ratio Decidendi

The Supreme Court held that the Clause 804 infill supplied by Irish Asphalt was not of merchantable quality nor fit for purpose as required by the contract and the Sale of Goods and Supply of Services Act 1980. The product failed multiple industry standard tests and caused pyrite heave, resulting in substantial damage. The Court found that the relevant standards were incorporated into the contract, and that breach could be established by evidence of the product's performance and testing after installation. The limitation of liability clause did not apply to exclude liability for the type of loss suffered. Irish Asphalt was liable for the costs of remediation incurred by Elliott Construction.

Court Disposition

Appeal dismissed. Judgment for Elliott Construction.

Orders

  • Irish Asphalt is liable to Elliott Construction for the costs of remediation of the Ballymun Central Youth Facility.
  • Costs to be paid by Irish Asphalt.