Cases - British Thomson-Houston Co v West

Record details

Name
British Thomson-Houston Co v West
Date
(1903)
Citation
19 T.L.R 662
Keywords
Construction contracts - liquidated damages - architect's decision final on deduction of liquidated damages - final certificate - presumption that architect taken into account liquidated damages in final certificate - whether employer estopped from bringing action to recover liquidated damages
Summary
In some circumstances, a contract may provide that the architect's decision is final as regards certain matters in relation to the building works. In this case, the defendant builders contended that the words of the contract provided that the architect had taken into account all liquidated damages due to be set off or withheld from the sum due to the contractor in the final certificate. Phillimore J rejected this contention. Where the architect's decision was final, the final certificate would constitute a 'strong presumption' that the architect had taken into account liquidated damages. However, if (as in this case) the contract did not empower the architect to deal with 'penalties' (i.e. liquidated damages), or if it is proved that he had not in fact decided the question of liquidated damages, then it will not so bind the employer. Further, in such circumstances, the mere issue of a final certificate certifying the amount due to the contractor would not operate so as to 'estop' the employer for bringing an action to recover liquidated damages.