OIL STATES INDUSTRIES (UK) LTD AGAINST LAGAN BUILDING CONTRACTORS LTD [2018] ScotCS CSOH_22 (13 March 2018)

OIL STATES INDUSTRIES (UK) LTD AGAINST LAGAN BUILDING CONTRACTORS LTD [2018] ScotCS CSOH_22 (13 March 2018)

The pursuer's averments regarding a contractual duty to warn and the validity of instruction 68 are suitable for inquiry and cannot be dismissed as irrelevant at this stage; however, the averments regarding instruction 67 are irrelevant as there is no pleaded background context making the instruction sufficiently clear.

Citation
[2018] ScotCS CSOH_22
Parties
Pursuer: Oil States Industries (UK) Limited; Defender: Lagan Building Contractors Limited
Jurisdiction
Scotland
Judgment Date
13 March 2018
Procedural Posture
Commercial Action (breach of Contract) / Debate on Relevancy and Specification of Pleadings
Outcome
Partly allowed; case to proceed to inquiry on specified issues; averments regarding instruction 67 excluded as irrelevant.
Legal Topics
Design and Build Contracts, Contractual Duties to Warn, Validity of Contract Instructions, Specification of Pleadings
Construction Law Contract Law Design and Build Contracts Contractual Duties to Warn Validity of Contract Instructions Specification of Pleadings

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Parties

Oil States Industries (UK) Limited

Pursuer

Lagan Building Contractors Limited

Defender

Procedural Posture

Commercial Action (breach of Contract) / Debate on Relevancy and Specification of Pleadings

Legal Issues

  1. 1 Whether the defender owed a contractual duty to warn the pursuer of inadequacies in the design under the contract terms
  2. 2 Whether contract instructions 67 and 68 were valid and sufficiently clear to require compliance by the defender
  3. 3 Whether the pursuer's pleadings regarding loss and causation were sufficiently specified

Ratio Decidendi

The pursuer's averments regarding a contractual duty to warn and the validity of instruction 68 are suitable for inquiry and cannot be dismissed as irrelevant at this stage; however, the averments regarding instruction 67 are irrelevant as there is no pleaded background context making the instruction sufficiently clear.

Court Disposition

Partly allowed; case to proceed to inquiry on specified issues; averments regarding instruction 67 excluded as irrelevant.

Orders

  • Matter to be put out by order to discuss appropriate interlocutor and further procedure.
  • Averments concerning instruction 67 excluded from probation.