The defendants had requested tenders for the design and construction of an offshore wind farm. The court now considered the situation arising because of inconsistencies between documents in the tender request. The successful tender was based upon an international standard (approved by one part of the tender), but which came to fail, breaching a different requirement. The standard was itself in error. The defendant appealed.
Held: The appeal succeeded, and the decision at first instance restored. The part of the contract at issue specified a minimum level, and the contract expressly supported ‘departures from . . standards’, and stated that MTH ‘shall determine whether to employ shear keys within the grouted connection’; had shear keys been provided, the problems which arose would, it appears, have been averted.
Judges:
Lord Neuberger of Abbotsbury PSC, Lord Mance, Lord Clarke of Stone-cum-Ebony, Lord Sumption, Lord Hodge JJSC
Lord Mance
Lord Clarke
Lord Sumption
Lord Hodge
Citations:
[2017] UKSC 59, [2017] Bus LR 1610, [2017] WLR(D) 562, UKSC 2015/0115
Links:
Bailii, Bailii Summary, WLRD, SC, SC Summary, SC Summary Video, SC 20170620 am Video, SC 20170620 pm Video
Jurisdiction:
England and Wales
Citing:
At TCC – MT Hojgaard A/S v E.On Climate and Renewables and Others TCC 15-Apr-2014
The claimant had constructed a substantial windfarm according to an international standard later shown to be defective. The defendant argued that the contract also required that the work be to a standard guaranteed a service life of 20 years.
At CA – M T Hojgaard A/S v EOn Climate and Renewables UK, Robin Rigg East Ltd and Another CA 22-May-2014
The claimant contracted with the defendants for the supply of a barge for delivery of equipment to offshore wind farms. The barge proved inadequate. The company supplied an alternative vessel, and the parties now disputed the financial consequences. . .
Cited – Thorn 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 . .
Cited – Mitsui Construction Co Ltd v Attorney General of Hong Kong PC 1986
Lord Bridge said that poor drafting in a contract itself provides: ‘no reason to depart from the fundamental rule of construction of contractual documents that the intention of the parties must be ascertained from the language that they have used . .
Cited – Sigma Finance Corporation, Re; (in administrative receivership) SC 29-Oct-2009
The court considered how the losses of the insolvent company were to be distributed as between secured creditors and preferential creditors, given the terms of the applicable trust deed.
Held: The court considered the interpretations of the . .
Cited – A M Gillespie and Co v John Howden and Co, Et E Contra SCS 7-Mar-1885
A customer ordered from a shipbuilder a ship according to specification, which bore, inter alia, that the ship was ‘to Carry 1800 tons dead weight, including coals, on 14 1/2 feet draught,’ and that a model was to be submitted for purchaser’s . .
Cited – Cammell Laird and Co Ltd v Manganese Bronze and Brass Co Ltd HL 1934
Shipbuilders agreed to build two ships to carry heavy liquids. They were to have propellers of special construction and diameter according to certain specifications. One proved unsatisfactory because it caused too much noise.
Held: If the . .
Cited – Greater Vancouver Water District v North American Pipe and Steel Ltd 14-Aug-2012
Canadian Supreme Court – implications of a contractual warranty that goods supplied by a supplier of materials for a construction project ‘will be fit for the purpose for which they are to be used’ and a warranty and guarantee that the goods ‘are . .
Cited – Mt Hojgaard A/S v EOn Climate and Renewables UK Robin Rigg East Ltd and Others TCC 23-Apr-2013
Dispute as to adequacy of barge provided for support of marine wind farm. . .
Cited – LB Holdings Intermediate 2 Ltd, The Joint Administrators of v Lehman Brothers International (Europe), The Joint Administrators of and Others SC 17-May-2017
In the course of the insolvent administration of the bank, substantial additional sums were received. Parties appealed against some orders made on the application to court for directions as to what was to be done with the surplus.
Held: The . .
Cited – Wood v Capita Insurance Services Ltd SC 29-Mar-2017
Construction of term of contract for the sale and purchase of the entire issued share capital of a company.
Held: The appeal was dismissed: ‘the SPA may have become a poor bargain, as it appears that it did not notify the sellers of a warranty . .
Cited – The Hydraulic Engineering Co Ltd v Spencer and Sons CA 1886
The defendants had contracted to make and deliver to the plaintiffs 15 cast iron cylinders. The contract provided that the cylinders would be cast according to specifications and plans provided by the plaintiffs, and also that the cylinders would be . .
Cited – Steel Company of Canada Ltd v Willand Management Ltd 4-Oct-1966
Supreme Court of Canada – Contracts-Roofing contract-Descriptions and specifications supplied by owner-Guarantee that work will remain weather tight-Damage caused by failure of material to perform intended function-Contractor’s claim for . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 04 September 2022; Ref: scu.591359
