Cases - M J Gleeson plc v Taylor Woodrow Construction Ltd

Record details

Name

M J Gleeson plc v Taylor Woodrow Construction Ltd

Date

(1989)

Citation

49 BLR 95

Keywords

Construction contracts - liquidated damages - set off - double deduction - whether party entitled to liquidated damages and claim for set off

Summary

The defendant management contractor entered into a subcontract with the claimant in respect of works to be carried out to the Imperial War Museum, London. Delays occurred to the works. The contract contained an LAD clause at a rate of £400/week. The subcontract further provided (at clause 11) that if the claimant failed to complete the subcontract works on time, it would pay the defendant 'a sum equivalent to any direct loss damage or expense suffered or incurred by' [the defendant], including such loss or damage 'suffered or incurred by any other sub-contractor for which [the defendant] is or may be liable under the relevant subcontract.' The defendant sought to set off two sums against sums owing to the claimant, the first being liquidated damages (pursuant to the liquidated damages clause) and the second for 'set-off claims' of ten other subcontractors (pursuant to clause 11).

HHJ Davies QC held that the 'set-off claims' were attributable to the claimant's failure to complete the works on time, and thus fell to be included in the liquidated damages set-off. Claiming both amounted to a 'double deduction'.