Cases - City Inn Ltd v Shepherd Construction Ltd [2010]

Record details

Name

City Inn Ltd v Shepherd Construction Ltd

Date

[2010]

Citation

ScotCS CSIH 68

Keywords

Construction contracts - extension of time - delay - liquidated damages - failure to provide notices of delaying event - whether failure to provide notice of delaying event constitutes breach of contract

Summary

All three appeal judges, rejected City Inn's appeal, however they were not unanimous in their analysis of decided cases on concurrent delay (Lord Carloway putting forward a dissenting view).

The majority opinion was provided by Lord Osborne who, in considering the issue of delay, set out five principles. Of those principles, the first four summarise what is required to be shown in a claim for an extension of time.

However, the fifth, states that, in situations where there is so-called 'true concurrency' the contract administrator may 'apportion' responsibility for delay between the contractor and the employer.

This is a new approach, and is binding in Scotland and would normally be considered to be persuasive in England. However, it has been the subject of some subsequent negative judicial comment in England, particularly in the case of Adyard.