Aspect Contracts (Asbetos) Ltd v Higgins Construction Plc: SC 17 Jun 2015

Aspect had claimed the return of funds paid by it to the appellant Higgins under an adjudication award in a construction contract disute. The claimant had been asked to prpare asbestos surveys and reports on maisonettes which Higgins was to acquire and redevlop. Higgins now appealed againt a decision overturning a high court judgment in its favour.
Held: The appeal failed. A party which had failed in a construction contract arbitration would be entitled to recover sums paid by it if and when the fundamental dispute was in the end decided in its favour. The associated cause of action for the recovery of that sum arose on the date of the first payment.

Lord Mance, Lord Wilson, Lord Sumption, Lord Reed, Lord Toulson
[2015] UKSC 38, [2015] 4 All ER 482, [2015] WLR(D) 261, 160 Con LR 28, [2015] BLR 503, [2015] 1 WLR 2961, [2015] 2 All ER (Comm) 965, [2015] Bus LR 830, UKSC 2014/0021
Bailii, Bailii Summary, WLRD, SC, SC Summary, SC Video
Housing Grants, Construction and Regeneration Act 1996, Scheme for Construction Contracts (England and Wales) Regulations 1998
England and Wales
CitedDavies v Taylor HL 1974
The plaintiff’s husband was killed in a road accident caused by the defendant’s negligence. They were childless. She had deserted him five weeks before his death and thereafter, he learned about her adultery with a fellow employee. He tried to . .
CitedJim Ennis Construction Ltd v Premier Asphalt Ltd TCC 24-Jul-2009
The court was asked as to the date of accrual of the cause of action where a losing party to an adjudication brought under Part II of the 1996 Act later begins proceedings to seek a final determination of the matters decided by the adjudicator with . .
At First InstanceAspect Contracts (Asbestos) Ltd v Higgins Construction Plc TCC 23-May-2013
The claimants had been engaged to provide an asbestos survey. An arbitration claim had gone against them and they appealed. . .
Appeal fromAspect Contracts (Asbestos) Ltd v Higgins Construction Plc CA 29-Nov-2013
The appeal succeeded. The Scheme implied that any overpayment could be recovered. . .
CitedGuaranty Trust Co of New York v Hannay and Co CA 1915
A claimant does not need to have a subsisting cause of action against a defendant before the court will grant a claimant a declaration. The court considered the ambiguity in the meaning of the word ‘jurisdiction’: ‘The first and, in my opinion, the . .
CitedWoolf v Collis Removal Service CA 1947
Claims in tort with a nexus to the contract can be within phrases such as ‘in connection with’ in the context of arbitration clauses . .
CitedAstro Vencedor Compania Naviera SA v Mabanaft GmbH CA 1971
For an arbitration clause in a contract between parties to be used to enforce arbitration of a tortious claim, the tortious claim must arise out of the contractual matters. In this case damages were sought for the wrongful arrest of a ship in . .
CitedEmpresa Exportadora de Azucar v Industria Azucarera Nacional S.A, The Playa Larga CA 1983
There had been a theft by Cuban sellers of one cargo of sugar, property in which had already passed to the buyers, and non-delivery of a second combined with trickery whereby the intended buyers were nonetheless induced to pay its price. The first . .
CitedFillite (Runcorn) Ltd v Aqua-Lift CA 1989
The court considered whether claims arising from misrepresentation or breach of a collateral contrat were claims arising ‘under’ the contract so as to be governed by the disputes provisions in it.
Held: The disputes did not arise ‘under the . .
CitedWestdeutsche Landesbank Girozentrale v Islington London Borough Council; Kleinwort Benson Ltd v Sandwell Borough Council ChD 23-Feb-1993
A bank, having made payment under an void interest rate swap agreement to a local authority, was entitled to recover the payments made under the equitable doctrine of restitution. It would be wrong to allow the local authorities to enjoy an unjust . .
CitedP and O Nedloyd BV v Arab Metals Co and Others (‘The UB Tiger’) QBD 22-Jun-2005
The claimants sought to amend their particulars of claim to add a request for declarations with regard to a bill of lading and contract for carriage.
Held: The application to amend was made more than six years after the cause of action . .
CitedHenderson v Merrett Syndicates Ltd HL 25-Jul-1994
Lloyds Agents Owe Care Duty to Member; no Contract
Managing agents conducted the financial affairs of the Lloyds Names belonging to the syndicates under their charge. It was alleged that they managed these affairs with a lack of due careleading to enormous losses.
Held: The assumption of . .
CitedWalker Construction (UK) Ltd v Quayside Homes Ltd and Another CA 7-Feb-2014
. .
CitedPremium Nafta Products Ltd (20th Defendant) and others v Fili Shipping Company Ltd and others; Fiona Trust and Holding Corporation v Privalov HL 17-Oct-2007
The owners of a ship sought to rescind charters saying that they had been procured by bribery.
Held: A claim to rescind a contract by reason of bribery fell within the scope of an arbitration clause under which the parties had agreed to refer . .
CitedSempra Metals Ltd v Inland Revenue Commissioners and Another HL 18-Jul-2007
The parties agreed that damages were payable in an action for restitution, but the sum depended upon to a calculation of interest. They disputed whether such interest should be calculated on a simple or compound basis. The company sought compound . .
CitedChimimport Plc v G d’Alesio SAS 1994
The phrase ‘arising under’ in a clause referring matters to arbitration is narrower than ‘arising out of’ and the court doubted whether a tortious claim could easily give rise to a dispute ‘under the contract’. . .
CitedKleinwort Benson Ltd v Lincoln City Council etc HL 29-Jul-1998
Right of Recovery of Money Paid under Mistake
Kleinwort Benson had made payments to a local authority under swap agreements which were thought to be legally enforceable when made. Subsequently, a decision of the House of Lords, (Hazell v. Hammersmith and Fulham) established that such swap . .
CitedAspect Contracts (Asbestos) Ltd v Higgins Construction Plc CA 29-Nov-2013
The appeal succeeded. The Scheme implied that any overpayment could be recovered. . .

Lists of cited by and citing cases may be incomplete.

Arbitration, Construction

Updated: 01 January 2022; Ref: scu.549063