A Contractor was retained by an Employer under a standard Design
& Build JCT Contract. The Contractor
served three applications for interim payment (the Applications) on
the Employer. In respect of the first two Applications, the
Employer served a "Payment Notice" on the Contractor out
of time and on the third, no Payment Notice was served.
Under the contract, this meant that, unless the Employer served
a "Pay Less" Notice on the Contractor, which the Employer
failed to do in respect of any of the Applications, the amounts
claimed in the Applications were due and owing.
The Employer failed to pay the amounts due pursuant to the
Applications and the Contractor walked off site and terminated the
contract, as it was entitled to do.
The Contractor then served a statutory demand for the amounts
claimed. The Employer applied to restrain presentation of a winding
up petition by the Contractor on the grounds that the debt was
disputed and/or it had a counterclaim.
The Judge found that, in the above circumstances, the debt was
due and owing and that the Contractor had adhered to the terms of
On the counterclaim, the Judge held that the Employer had failed
to adduce evidence sufficient to demonstrate that there was a
genuine and substantial counterclaim. As the Judge put it,
"There is simply no evidence before me that that is so".
The Employer's application was therefore dismissed.
Whilst construction proceedings are famed for their disputes and
counterclaims, this case reminds parties that they need to be up to
speed with their contractual rights, particularly in light of the
tight deadlines, and cannot simply hope that the winding route will
not be followed or the court will restrain presentation of a
petition. Parties should assert their contractual rights and take
advantage of the adjudication process, wherever possible.
The recent County Court decision in Camelot Property Management Limited (1) and Camelot Guardian Management Limited (2) v. Greg Roynon is an uncomfortable reminder to landowners of how easy it is to inadvertently grant a tenancy when only a licence was intended. The consequences of getting it wrong can be time consuming and costly.
It's now less than one year to go until the Energy
Efficiency (Private Rented Property) (England and Wales)
Regulations 2015, commonly known as the MEES Regulations (minimum
energy efficiency standards) come into effect.
It's now less than one year to go until the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, commonly known as the MEES Regulations (minimum energy efficiency standards) come into effect. It
The use of letters of intent can be fraught with difficulty. In this Insight we review the key case law on letters of intent of the past few years and seek to highlight some of the lessons that can be learned from them.
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