Cases - Laing Management (Scotland) Ltd v John Doyle Construction Ltd (Scotland)

Record details

Name
Laing Management (Scotland) Ltd v John Doyle Construction Ltd (Scotland)
Date
[2004]
Citation
Scots 141
Keywords
Construction claim - loss and expense claim - pleading - global claim - delay - causal link - individual causal link - heads of loss
Summary

John Doyle was engaged by Laing to carry out certain work packages for the construction of new headquarters for Scottish Widows, pursuant to an amended form of Scottish Works Contract. In the litigation, John Doyle sought an extension of time of some 22 weeks, together with a substantial claim for loss and expense (over £4m). The loss and expense claim was calculated on a classic 'global' basis, by comparing pre-contract estimates and actual costs.

Although the claim in John Doyle was for loss and expense, it is submitted that the principles are of equal application to a claim for delay. The following principles can be extracted from the judgment of the Inner House:

  • A contractor must normally plead and prove individual causal links between each alleged breach or claim event and each particular delay for a delay claim under a construction contract to succeed.
  • If the consequences of each of the alleged delay events cannot be separated, and if the contractor is able to demonstrate that the fault for all of the events on which he relies is the employer's, it is not necessary for him to demonstrate causal links between individual events and particular heads of loss.
  • However, if a significant cause of the (cumulative) delay alleged was a matter for which the employer is not responsible, the contractor's global claim will fail.
  • There may be a delay event or events for which the employer is not responsible. Nonetheless, provided that these are insignificant, an apportionment exercise may be carried out by the tribunal.
  • Pursuing a 'global claim' will not be permitted if it is advanced in lieu of proper pleading. The fundamental requirements of any pleading must be satisfied, namely:
    • that fair notice must be given to the other party of the facts relied upon together with the legal consequences that are said to flow from such facts;
    • so far as causal links are concerned, in a global claim situation there will usually be no need to do more than set out the general proposition that such links exist (causation being largely a matter of inference from expert's reports); and
    • heads of loss should be set out comprehensively.