Johnston v WH Brown Construction (Dundee) Ltd [1999] ScotCS 145 (11 June 1999)

Johnston v WH Brown Construction (Dundee) Ltd [1999] ScotCS 145 (11 June 1999)

Costs incurred by the employer in investigating, preparing, and delivering a Schedule of Defects under Condition 16.2, including technical and legal advice and management time, are not recoverable as damages against the contractor in the ordinary operation of the contract. The pursuer's claims for disruption and management costs are inadequately specified and do not constitute a relevant head of damages.

Citation
[1999] ScotCS 145
Parties
Pursuer: Michael A Johnston; Defenders: W H Brown Construction (Dundee) Limited
Jurisdiction
Scotland
Judgment Date
11 June 1999
Procedural Posture
Ordinary Action (commercial Roll) / Judgment After Debate on Relevancy and Specification
Outcome
Principal action dismissed; decree granted for defenders on counterclaim.
Legal Topics
Damages for Breach of Contract, Defects Liability Period, Recoverability of Investigation and Management Costs, Building Contracts
Construction Law Contract Law Damages for Breach of Contract Defects Liability Period Recoverability of Investigation and Management Costs Building Contracts

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Parties

Michael A Johnston

Pursuer

W H Brown Construction (Dundee) Limited

Defenders

Procedural Posture

Ordinary Action (commercial Roll) / Judgment After Debate on Relevancy and Specification

Legal Issues

  1. 1 Whether costs incurred by the employer for technical investigation, legal advice, and management time in preparing a Schedule of Defects are recoverable as damages for breach of contract under a building contract with contractor's design.
  2. 2 Whether the pursuer's claim for disruption and management costs is sufficiently specified to justify inquiry.

Ratio Decidendi

Costs incurred by the employer in investigating, preparing, and delivering a Schedule of Defects under Condition 16.2, including technical and legal advice and management time, are not recoverable as damages against the contractor in the ordinary operation of the contract. The pursuer's claims for disruption and management costs are inadequately specified and do not constitute a relevant head of damages.

Court Disposition

Principal action dismissed; decree granted for defenders on counterclaim.

Orders

  • Sustain defenders' first plea-in-law and dismiss the principal action.
  • Sustain defenders' plea-in-law in the counterclaim and grant decree as counterclaimed for.