FES LTD AGAINST HFD CONSTRUCTION GROUP LTD [2024] ScotCS CSOH_20 (27 February 2024)

FES LTD AGAINST HFD CONSTRUCTION GROUP LTD [2024] ScotCS CSOH_20 (27 February 2024)

Clause 4.20.1 of the contract, by its clear language, makes the contractor's entitlement to reimbursement for loss and expense subject to compliance with the provisions of clause 4.21, thereby creating a condition precedent; failure to comply with clause 4.21 defeats entitlement.

Citation
[2024] ScotCS CSOH_20
Parties
Pursuer: FES Limited; Defender: HFD Construction Group Limited
Jurisdiction
Scotland
Judgment Date
27 February 2024
Procedural Posture
Commercial Contractual Dispute / Outer House, Court of Session, Debate on Contractual Construction
Outcome
Action dismissed; defender's first plea-in-law sustained.
Legal Topics
Contractual Interpretation, Conditions Precedent, Loss and Expense Claims, Notification Provisions, Standard Form Contracts
Contract Law Construction Law Contractual Interpretation Conditions Precedent Loss and Expense Claims Notification Provisions Standard Form Contracts

Case Brief

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Parties

FES Limited

Pursuer

HFD Construction Group Limited

Defender

Procedural Posture

Commercial Contractual Dispute / Outer House, Court of Session, Debate on Contractual Construction

Legal Issues

  1. 1 Whether compliance with clause 4.21 is a condition precedent to entitlement to reimbursement for loss and expense under clause 4.20.1
  2. 2 Proper construction of clauses 4.20 and 4.21 in the Standard Building Contract

Ratio Decidendi

Clause 4.20.1 of the contract, by its clear language, makes the contractor's entitlement to reimbursement for loss and expense subject to compliance with the provisions of clause 4.21, thereby creating a condition precedent; failure to comply with clause 4.21 defeats entitlement.

Court Disposition

Action dismissed; defender's first plea-in-law sustained.

Orders

  • Defender assoilzied from conclusions of the summons.
  • Question of expenses reserved.