Order restored: High Court clarifies quantum meruit

After over a decade of uncertainty, the High Court yesterday reined in the use of the quantum meruit remedy. A majority of the Court found that builders can no longer seek compensation on a quantum meruit basis in relation to works where the builder has accrued a right to payment under the contract. While builders can commence a claim … Read more

Case Digest: The importance of the written word – delays in moving (Heaven) and Earth

In Lucas Earthmovers Pty Limited v Anglogold Ashanti Australia Limited [2019] FCA 1049, the Federal Court of Australia considered several issues that typically arise in large-scale resources projects. In so doing, it reinforced the sanctity of the agreed bargain between the parties and highlighted the inherent difficulties in proving the oft-claimed, but rarely successful, misleading … Read more

The English Courts clarify what constitutes a ‘default’ in the context of ‘disallowed cost’ in a target cost construction contract

Herbert Smith Freehills’ Tokyo office has written an article on the recent case of Network Rail Infrastructure Limited v ABC Electrification [2019] EWHC 1769 (TCC) in which the English Courts adopted the natural meaning of ‘default’ in the definition of ‘Disallowed Costs’ in a contract modelled on the ICE Conditions of Contract, Target Cost version. Read more

CASE DIGEST: Court rejected narrow interpretation of guarantee issued by parent company which sought to limit extent of guarantor’s on demand liability to those claims where liability was admitted and only quantum was disputed

In Rubicon Vantage International PTE Ltd v Krisenergy Ltd [2019] EWHC 2012 (Comm), the court determined that the fact that a parent company, and not a financial institution, issued the guarantee was no reason to limit the terms of the guarantee.  The wording of the guarantee was the key consideration when determining the scope of … Read more

The rule on penalties in Makdessi applied to EPC contracts

The decision in (1) GPP Big Field LLP and (2) GPP Langstone LLP v Solar EPC Solutions SL (formerly known as Prosolia Siglio XXI) [2018] EWHC 2866 (Comm) has applied the Supreme Court’s recast penalties test from Makdessi1. The decision is one of the few construction cases that have applied Makdessi in determining whether liquidated … Read more