Mc Cabe Builders (Dublin) Ltd -v- Sagamu Developments Ltd & Ors [2007] IEHC 391 (23 November 2007)

Mc Cabe Builders (Dublin) Ltd -v- Sagamu Developments Ltd & Ors [2007] IEHC 391 (23 November 2007)

No concluded contract existed as to the essential terms, specifically regarding whether the Bill of Quantities formed part of the contract documents and how variations were to be treated. The parties' minds did not meet on these fundamentals, and the signed 'blue form' RIAI contract excluded the Bill of Quantities as a contract document. Therefore, the plaintiff is entitled to payment on a quantum meruit basis for work done.

Citation
[2007] IEHC 391
Parties
Plaintiff: McCabe Builders (Dublin) Limited; Defendant: Sagamu Developments Limited; Defendant: Laragan Developments Limited; Defendant: Hanly Group Limited
Jurisdiction
Ireland
Judgment Date
23 November 2007
Procedural Posture
Commercial Court Contract Dispute / Judgment
Outcome
Declaration that no concluded contract existed as to the essential terms; plaintiff entitled to quantum meruit.
Legal Topics
Formation of Contract, Interpretation of Contract, Building Contracts, Quantum Meruit, Variation Claims
Contract Law Construction Law Formation of Contract Interpretation of Contract Building Contracts Quantum Meruit Variation Claims

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Parties

McCabe Builders (Dublin) Limited

Plaintiff

Sagamu Developments Limited

Defendant

Laragan Developments Limited

Defendant

Hanly Group Limited

Defendant

Procedural Posture

Commercial Court Contract Dispute / Judgment

Legal Issues

  1. 1 Whether a binding contract was concluded between the parties and, if so, its terms
  2. 2 Whether the Bill of Quantities formed part of the contract documents
  3. 3 How variations and extra works are to be treated for payment purposes

Ratio Decidendi

No concluded contract existed as to the essential terms, specifically regarding whether the Bill of Quantities formed part of the contract documents and how variations were to be treated. The parties' minds did not meet on these fundamentals, and the signed 'blue form' RIAI contract excluded the Bill of Quantities as a contract document. Therefore, the plaintiff is entitled to payment on a quantum meruit basis for work done.

Court Disposition

Declaration that no concluded contract existed as to the essential terms; plaintiff entitled to quantum meruit.

Orders

  • Plaintiff entitled to be paid on a quantum meruit basis for work done.
  • Matter of quantum to be determined by arbitration if not agreed.