Blyth & Blyth Ltd v Carillon Construction Ltd [2001] ScotCS 90 (18 April 2001)

Blyth & Blyth Ltd v Carillon Construction Ltd [2001] ScotCS 90 (18 April 2001)

The contractor cannot claim for its own losses arising from pre-novation breaches by the consultant; it can only claim for losses suffered by the employer, as the novation agreement operates as an assignation of the employer's claim and does not retrospectively alter the scope or content of the consultant's duties.

Citation
[2001] ScotCS 90
Parties
Pursuer: Blyth & Blyth Limited; Defender: Carillion Construction Limited
Jurisdiction
Scotland
Judgment Date
18 April 2001
Procedural Posture
Commercial Contractual Dispute (outer House, Court of Session) / Interlocutory Decision on Relevancy of Counterclaim
Outcome
Substantial parts of the counterclaim are irrelevant; case to be put out By Order for further specification of irrelevant averments.
Legal Topics
Novation, Assignation, Measure of Damages, Consultant's Duties, Design and Build Contracts
Contract Law Construction Law Novation Assignation Measure of Damages Consultant's Duties Design and Build Contracts

Case Brief

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Parties

Blyth & Blyth Limited

Pursuer

Carillion Construction Limited

Defender

Procedural Posture

Commercial Contractual Dispute (outer House, Court of Session) / Interlocutory Decision on Relevancy of Counterclaim

Legal Issues

  1. 1 Whether, following a novation agreement, the contractor can claim for its own losses arising from pre-novation breaches by the consultant, or only for losses suffered by the employer.
  2. 2 Proper construction and effect of the novation agreement and its impact on the scope of the consultant's liability.

Ratio Decidendi

The contractor cannot claim for its own losses arising from pre-novation breaches by the consultant; it can only claim for losses suffered by the employer, as the novation agreement operates as an assignation of the employer's claim and does not retrospectively alter the scope or content of the consultant's duties.

Court Disposition

Substantial parts of the counterclaim are irrelevant; case to be put out By Order for further specification of irrelevant averments.

Orders

  • Case put out By Order to identify irrelevant items in the counterclaim.