AMEC Mining v Scottish Coal Company: SCS 6 Aug 2003

The pursuers contracted to remove coal by opencast mining from the defender’s land. They said the contract assumed the removal first of substantial peat depositys from the surface by a third party. They had to do that themselves at substantial cost. They said the defenders should have issued a variation to allow them to claim the costs. The defenders said it could have been claimed as a quantum meruit.
Held: Quantum meruit was not normally claimable where there was a contract. There was a discretion to issue an instruction to vary and that had to be exercised reasonably. The pursuers averred that the defenders were under an obligation to ensure that their site manager operated the contract properly by issuing the instruction. No such term could be implied.


Lord Carloway


[2003] ScotCS 223






CitedSmith New Court Securities Ltd v Scrimgeour Vickers HL 21-Nov-1996
The defendant had made misrepresentations, inducing the claimant to enter into share transactions which he would not otherwise have entered into, and which lost money.
Held: A deceitful wrongdoer is properly liable for all actual damage . .
CitedDowns v Chappell; Downs v Stephenson Smart (a Firm) CA 1996
The plaintiff purchased a book shop. He claimed that in doing so he had relied upon the accounts prepared and signed off by the respective defendants.
Held: The judge had been wrong by testing what would have been the true figures as against . .
CitedTharsis Sulpur v McElroy and Sons HL 1878
A contractor asked to carry out works was entitled to be paid on a quantum meruit basis if no price appeared to have been set under the contract. . .
CitedLeyland and Co v Cia Panamena Europea Navigacion CA 1943
Goddard LJ said: ‘He, therefore, was unwilling to carry out the duty assigned by the contract to him. The defendants either were of the same opinion or adopted his view; for this purpose, it matters not which. Consequently, they neither required him . .
CitedPanamena Europea Navigacion v Frederick Leyland and Co HL 1947
The parties had entered into an agreement providing for arbitration of any disputes. Lord Thankerton said: ‘By entering into the contract the respondents agreed that the appellant’s surveyor should discharge both these duties and therefore they . .
CitedEsso Petroleum Company Ltd v Mardon CA 6-Feb-1976
Statements had been made by employees of Esso in the course of pre-contractual negotiations with Mr Mardon, the prospective tenant of a petrol station. The statements related to the potential throughput of the station. Mr Mardon was persuaded by the . .
CitedThorn v Mayor and Commonality of London HL 1876
The contractor successfully tendered for work involving the replacement of the existing Blackfriars Bridge pursuant to an employer’s invitation, which stated that the work was to be carried out pursuant to a specification. The specification included . .
CitedBoyd and Forrest v Glasgow and South-Western Railway Co HL 11-Jan-1915
The issuing of an instruction was not a condition precedent to entitlement to payment in a construction contract. . .
CitedDoyle v Olby (Ironmongers) Ltd CA 31-Jan-1969
The plaintiff had been induced by the fraudulent misrepresentation of the defendant to buy an ironmonger’s business for 4,500 pounds plus stock at a valuation of 5,000 pounds. Shortly after the purchase, he discovered the fraud and started the . .
CitedBarry and Barry v Sutherland SCS 23-Nov-2001
The pursuers alleged that the defender had made fraudulent misrepresentations to them when selling them his bar business. On entry they had found a set of accounts showing a lower turnover, and exercised an option to break their lease.
Held: . .
CitedSouth Australia Asset Management Corporation v York Montague Ltd etc HL 24-Jun-1996
Limits of Damages for Negligent Valuations
Damages for negligent valuations are limited to the foreseeable consequences of advice, and do not include losses arising from a general fall in values. Valuation is seldom an exact science, and within a band of figures valuers may differ without . .
CitedBank of Scotland v Dunedin Property Investment Co Ltd IHCS 24-Sep-1998
Issue of loan stock supported by charge for ‘all costs charges and expenses incurred’ this included the breakage cost of the bank in setting up interest-rate swap arrangements to protect itself against swings in costs. . .
Lists of cited by and citing cases may be incomplete.

Construction, Contract

Updated: 07 September 2022; Ref: scu.185400