Priority Construction UK LTD against Advanced Material Processing LTD (Sheriff Court Civil) [2024] SCPER 48 (20 November 2024)

Priority Construction UK LTD against Advanced Material Processing LTD (Sheriff Court Civil) [2024] SCPER 48 (20 November 2024)

The Defender was unjustly enriched by retaining sums paid by the Pursuer under protest and reservation of rights to avoid the advertisement of a winding up petition, where the contract price was to be calculated by volume and not weight, and the sums claimed and paid exceeded what was due under the contract. There was no legal justification for the enrichment, and it is equitable to compel repayment.

Citation
[2024] SCPER 48
Parties
Pursuer: Priority Construction UK Limited; Defender: Advanced Material Processing Limited
Jurisdiction
Scotland
Judgment Date
20 November 2024
Procedural Posture
Civil (commercial/contract) / Judgment After Proof (trial)
Outcome
Decree for payment in favour of Pursuer
Legal Topics
Construction Contracts, Measurement Disputes, Unjust Enrichment, Winding Up Petitions, Remedies for Overpayment
Contract Law Commercial Law Unjust Enrichment Construction Contracts Measurement Disputes Winding Up Petitions Remedies for Overpayment

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Parties

Priority Construction UK Limited

Pursuer

Advanced Material Processing Limited

Defender

Procedural Posture

Civil (commercial/contract) / Judgment After Proof (trial)

Legal Issues

  1. 1 Whether the Defender was entitled to retain sums paid by the Pursuer in settlement of disputed invoices and winding up petition expenses
  2. 2 Whether the contract price was to be calculated by volume or weight of rock processed
  3. 3 Whether the Pursuer is entitled to repayment on grounds of unjust enrichment

Ratio Decidendi

The Defender was unjustly enriched by retaining sums paid by the Pursuer under protest and reservation of rights to avoid the advertisement of a winding up petition, where the contract price was to be calculated by volume and not weight, and the sums claimed and paid exceeded what was due under the contract. There was no legal justification for the enrichment, and it is equitable to compel repayment.

Court Disposition

Decree for payment in favour of Pursuer

Orders

  • Defender to pay Pursuer £58,724.51 with interest at 8% per annum from date of service until payment
  • Defender to pay Pursuer £1,611 with interest at 8% per annum from date of service until payment