Cases - John Mowlem & Co plc v Eagle Star Insurance Co Ltd (No. 1)

Record details

Name

John Mowlem & Co plc v Eagle Star Insurance Co Ltd (No. 1)

Date

(1992)

Citation

33 Con LR 131

Keywords

Contract administration

Summary

This dispute arose out of redevelopment works to a hospital in West London. The claimant, a well-known firm of building contractors, brought proceedings against the developer and architect following the latter's issue of certificates of deduction which entitled the developer to withhold payment to the claimant and the issue of a certificate which terminated its employment. Mowlem was appointed under a management contract which was not in standard form, and alleged that the architect had wrongfully interfered with the performance of the contract and had failed to act independently of the developer.

In refusing to strike out Mowlem's claim, HHJ Lloyd QC held that where a contract administrator is appointed to issue certificates fairly and independently in respect of building works, and fails to do so by simply yielding to the wishes of one of the parties (in this case, the developer), then he may be held liable for interfering with the building contract. It seems that in order to ground liability in this way, Mowlem would have to establish that the architect had actual knowledge of the existence of the management contract and intentionally interfered with its performance.