Read the full judgment text of HCCT 37/2010 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 13 April 2012 before Deputy High Court Judge Stone.
Construction law — Subcontract dispute — Payment breach — Suspension of work — Liquidated damages — Warranty obligations — Completion delay — Additional costs of completion and acceleration — Liability for defective works — Evidence evaluation — Expert valuation approaches — Quantum assessment — Contract termination principles — Employee compensation indemnity — Costs order. The plaintiff subcontractor Unison Projects and defendant main contractor AHL Design Workshop disputed payment for structural steelworks and roofing on an extension project at the French International School. Unison suspended works due to non-payment and never returned to complete. The court held the subcontract formed by the 5 November 2009 quotation, drawings and BD approval with agreed payment terms. Plaintiff was entitled to suspend works due to payment breach but failed to affirm or terminate contract timely, causing breach. Partial liquidated damages ($200,000) awarded for delay. Plaintiff was liable for costs of additional completion by others and acceleration, but the warranty claim was reduced to $900,000 from $3.9 million. Plaintiff liable for damages caused by vibration to school premises. Defendant owed plaintiff $3,636,246 net after set-offs. Employee compensation indemnity ordered and interest awarded. A ‘global’ costs order was made with defendant paying plaintiff costs save for some expert reports. Judgment delivered 13 April 2012 by Deputy High Court Judge Stone.
Legal issues: Terms of the subcontract including payment terms · Obligation to pay liquidated damages and terms · Obligation to provide 10-year warranty for structural steelwork and roofing · Whether the Rev.1 Draft Programme formed part of the subcontract · Entitlement to suspend works due to non-payment · Whether plaintiff was prevented from resuming work at end of May 2010 · Liability for additional costs for completing unfinished works · Liability for additional acceleration costs · Liability for liquidated damages deducted by FIS · Liability for additional costs in providing 10-year warranty valued at $3.9 million · Detention/conversion/damage to Unison’s plant and equipment · Liability for substandard or defective works
Outcome: Judgment for plaintiff in sum of $3,636,246; employee’s compensation indemnity granted to plaintiff; interest awarded on judgment sum; costs ordered globally with defendant to pay plaintiff’s costs except for specified expert witness costs
Cites 2 cases