Va Tech Wabag UK Ltd v. Morgan Est Ltd [2002] ScotCS 160 (6th June, 2002)

Va Tech Wabag UK Ltd v. Morgan Est Ltd [2002] ScotCS 160 (6th June, 2002)

The defenders are not entitled to withhold consent to the distribution of monies received under the Construction Contract except for adjustments relating to variations of the contract price as provided in Article 6.5; claims for ancillary services under Articles 6.3 and 6.4 do not justify withholding payment. The pursuers are entitled to interim interdict and an order under section 47(2) for payment of sums certified as due to them.

Citation
[2002] ScotCS 160
Parties
Pursuer: VA Tech Wabag UK Limited; Defender: Morgan Est (Scotland) Limited
Jurisdiction
Scotland
Procedural Posture
Commercial Contract Dispute / Interim Remedies (interim Interdict and Order Under Section 47(2) Court of Session Act 1988)
Outcome
Interim interdict maintained; order under section 47(2) granted in favour of pursuers.
Legal Topics
Consortium Agreements, Trust of Funds, Interim Interdict, Section 47(2) Court of Session Act 1988, Interpretation of Contract, Distribution of Contract Payments, Set Off and Retention, Cash Flow in Construction Contracts
Commercial Law Construction Law Consortium Agreements Trust of Funds Interim Interdict Section 47(2) Court of Session Act 1988 Interpretation of Contract Distribution of Contract Payments +2 more

Case Brief

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Parties

VA Tech Wabag UK Limited

Pursuer

Morgan Est (Scotland) Limited

Defender

Procedural Posture

Commercial Contract Dispute / Interim Remedies (interim Interdict and Order Under Section 47(2) Court of Session Act 1988)

Legal Issues

  1. 1 Whether defenders are entitled to withhold consent to distribution of monies held in trust under a construction consortium agreement except for contractually provided adjustments
  2. 2 Proper construction of 'adjustments' in Article 14.1 of the Construction Consortium Agreement
  3. 3 Whether claims under Articles 6.3 and 6.4 constitute 'adjustments' permitting withholding of payment

Ratio Decidendi

The defenders are not entitled to withhold consent to the distribution of monies received under the Construction Contract except for adjustments relating to variations of the contract price as provided in Article 6.5; claims for ancillary services under Articles 6.3 and 6.4 do not justify withholding payment. The pursuers are entitled to interim interdict and an order under section 47(2) for payment of sums certified as due to them.

Court Disposition

Interim interdict maintained; order under section 47(2) granted in favour of pursuers.

Orders

  • Refusal of defenders' motion for recall of interim interdict.
  • Order under section 47(2) Court of Session Act 1988 granted, requiring defenders to consent to and assist in transfer of monies due to pursuers from account no. 10437418.