Wescol Structures Ltd v Miller Construction Ltd [1998] ScotCS 4 (8 May 1998)

Wescol Structures Ltd v Miller Construction Ltd [1998] ScotCS 4 (8 May 1998)

The court held that the payment terms, including the 2.5% discount for prompt payment, formed part of the contract by incorporation of prior correspondence. Miller failed to pay within the stipulated period and was not entitled to deduct the discount. Interest is payable only from the date of citation, as Miller's retention was not wrongful in the legal sense.

Citation
[1998] ScotCS 4
Parties
Pursuer: Wescol Structures Limited; Defender: Miller Construction Limited
Jurisdiction
Scotland
Judgment Date
08 May 1998
Procedural Posture
Commercial Contract Dispute / Judgment After Debate on Legal Issues
Outcome
Judgment for the pursuer (Wescol Structures Limited)
Legal Topics
Sub Contract Formation, Payment Terms, Discount Entitlement, Interest on Withheld Sums
Construction Law Contract Law Sub Contract Formation Payment Terms Discount Entitlement Interest on Withheld Sums

Case Brief

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Parties

Wescol Structures Limited

Pursuer

Miller Construction Limited

Defender

Procedural Posture

Commercial Contract Dispute / Judgment After Debate on Legal Issues

Legal Issues

  1. 1 Whether Miller was entitled to deduct a 2.5% discount from interim payments under the sub-contract
  2. 2 Whether Miller is liable to pay interest on sums deducted from the dates on which they fell due

Ratio Decidendi

The court held that the payment terms, including the 2.5% discount for prompt payment, formed part of the contract by incorporation of prior correspondence. Miller failed to pay within the stipulated period and was not entitled to deduct the discount. Interest is payable only from the date of citation, as Miller's retention was not wrongful in the legal sense.

Court Disposition

Judgment for the pursuer (Wescol Structures Limited)

Orders

  • Decree for payment of sums retained by Miller as discount
  • Interest to run from date of citation