Scanmudring AS v James Fisher MFE Ltd [2017] ScotCS CSOH_91 (23 June 2017)

Scanmudring AS v James Fisher MFE Ltd [2017] ScotCS CSOH_91 (23 June 2017)

The contract between the pursuer and defender was varied by agreement, evidenced by communications and conduct, to delete target lump sums and reduced day rates and substitute full day rates as specified in tender Revision 006. The circumstances are explicable only on the basis of express or implied agreement to vary the payment terms.

Citation
[2017] ScotCS CSOH_91
Parties
Pursuer: Scanmudring AS; Defender: James Fisher MFE Limited
Jurisdiction
Scotland
Judgment Date
23 June 2017
Procedural Posture
Commercial Contract Dispute / Preliminary Proof; Opinion Issued
Outcome
Contract varied as claimed by pursuer; case put out by order for further procedure.
Legal Topics
Contract Variation, Payment Terms, Subcontractor Agreements, Performance and Conduct, Objective Test for Contract Formation
Contract Law Contract Variation Payment Terms Subcontractor Agreements Performance and Conduct Objective Test for Contract Formation

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Parties

Scanmudring AS

Pursuer

James Fisher MFE Limited

Defender

Procedural Posture

Commercial Contract Dispute / Preliminary Proof; Opinion Issued

Legal Issues

  1. 1 Whether the contract between the pursuer and defender was varied by agreement after discovery of unexpected seabed conditions
  2. 2 Whether payment terms were altered from target lump sums and reduced day rates to full day rates

Ratio Decidendi

The contract between the pursuer and defender was varied by agreement, evidenced by communications and conduct, to delete target lump sums and reduced day rates and substitute full day rates as specified in tender Revision 006. The circumstances are explicable only on the basis of express or implied agreement to vary the payment terms.

Court Disposition

Contract varied as claimed by pursuer; case put out by order for further procedure.

Orders

  • Contract terms regarding payment varied to substitute full day rates as per tender Revision 006.
  • Requirement for demobilisation by 20 May deleted.