Caledonian Environmental Services Plc v (First) Degremont Societe Anonyme [2010] ScotCS CSOH_73 (22 June 2010)

Caledonian Environmental Services Plc v (First) Degremont Societe Anonyme [2010] ScotCS CSOH_73 (22 June 2010)

The court held that the DCC was not contractually obliged to seal or modify all manholes and connections in the retained section of the LVTS to withstand pressure, as Schedule Part 33 expressly excluded the retained section from the DCC's responsibility, and paragraph 2.2.5 of the Design and Construction Proposals did not impose such an obligation. The contract, read as a whole, did not support the pursuer's construction, and the exclusion clause was clear and effective.

Citation
[2010] ScotCS CSOH_73
Parties
Pursuer: Caledonian Environmental Services Plc; First Defender: Degremont Societe Anonyme; Second Defender: Amec Capital Projects Limited
Jurisdiction
Scotland
Judgment Date
22 June 2010
Procedural Posture
Commercial Contract Dispute / Preliminary Proof Before Answer on Construction and Rectification
Outcome
Pursuer's claim on construction dismissed; rectification not granted
Legal Topics
Interpretation of Construction Contracts, Scope of Contractor Obligations, Rectification of Contract, Exclusion Clauses
Contract Law Construction Law Interpretation of Construction Contracts Scope of Contractor Obligations Rectification of Contract Exclusion Clauses

Case Brief

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Parties

Caledonian Environmental Services Plc

Pursuer

Degremont Societe Anonyme

First Defender

Amec Capital Projects Limited

Second Defender

Procedural Posture

Commercial Contract Dispute / Preliminary Proof Before Answer on Construction and Rectification

Legal Issues

  1. 1 Whether the contractor (DCC) was obliged under the D&C Contract to seal manholes and pipe connections in the retained section of the LVTS against leakage under pressure
  2. 2 Whether the contract should be rectified to reflect the pursuer's construction if their interpretation does not prevail

Ratio Decidendi

The court held that the DCC was not contractually obliged to seal or modify all manholes and connections in the retained section of the LVTS to withstand pressure, as Schedule Part 33 expressly excluded the retained section from the DCC's responsibility, and paragraph 2.2.5 of the Design and Construction Proposals did not impose such an obligation. The contract, read as a whole, did not support the pursuer's construction, and the exclusion clause was clear and effective.

Court Disposition

Pursuer's claim on construction dismissed; rectification not granted

Orders

  • No declarator granted as to the extent of the defenders' obligations under the D&C Contract
  • No order for rectification of the contract