City Inn Ltd v Shepherd Comstruction Ltd [2010] ScotCS CSIH_68 (22 July 2010)

City Inn Ltd v Shepherd Comstruction Ltd [2010] ScotCS CSIH_68 (22 July 2010)

The court held that, under the JCT Standard Form contract, where there are concurrent delays caused by both relevant events (such as late architect's instructions) and contractor-responsible events, the contractor is entitled to an extension of time for the period of delay attributable to the relevant event. The court also held that clause 13.8 applies only to delays caused by the content of instructions, not their lateness, and that the employer had waived strict compliance with clause 13.8. The Lord Ordinary's findings on causation, concurrency, and loss and expense were upheld.

Citation
[2010] ScotCS CSIH_68
Parties
Pursuers and Reclaimers: City Inn Limited; Defenders and Respondents: Shepherd Construction Limited
Jurisdiction
Scotland
Judgment Date
22 July 2010
Procedural Posture
Appeal (reclaiming Motion) From the Outer House, Court of Session (scotland) / Appellate Judgment (inner House, Extra Division)
Outcome
Appeal dismissed; Lord Ordinary's decision largely upheld.
Legal Topics
Extensions of Time, Liquidated Damages, Concurrent Delay, Waiver and Personal Bar, Interpretation of Standard Form Contracts
Construction Law Contract Law Extensions of Time Liquidated Damages Concurrent Delay Waiver and Personal Bar Interpretation of Standard Form Contracts

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 14 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

City Inn Limited

Pursuers and Reclaimers

Shepherd Construction Limited

Defenders and Respondents

Procedural Posture

Appeal (reclaiming Motion) From the Outer House, Court of Session (scotland) / Appellate Judgment (inner House, Extra Division)

Legal Issues

  1. 1 Proper interpretation and application of extension of time provisions (clause 25) in JCT Standard Form contracts
  2. 2 Treatment of concurrent delay where both employer and contractor are responsible for delay
  3. 3 Effect and scope of special amendment clause 13.8 regarding contractor's entitlement to extension of time

Ratio Decidendi

The court held that, under the JCT Standard Form contract, where there are concurrent delays caused by both relevant events (such as late architect's instructions) and contractor-responsible events, the contractor is entitled to an extension of time for the period of delay attributable to the relevant event. The court also held that clause 13.8 applies only to delays caused by the content of instructions, not their lateness, and that the employer had waived strict compliance with clause 13.8. The Lord Ordinary's findings on causation, concurrency, and loss and expense were upheld.

Court Disposition

Appeal dismissed; Lord Ordinary's decision largely upheld.

Orders

  • Respondents (contractors) entitled to an extension of time of nine weeks, with the completion date fixed at 29 March 1999.
  • Reduction of the certificates of notification of revision to the completion date and certificate of non-completion issued by Keppie Architects on 9 June 1999.