Cases - Pearce & High Ltd v Mr & Mrs Baxter

Record details

Name

Pearce & High Ltd v Mr & Mrs Baxter

Date

[1999]

Citation

EWCA Civ 789

Keywords

Effective notification provisions during defects liability period

Summary

In this case works were carried out under a JCT Minor Works Contract. Following practical completion a dispute occurred regarding outstanding monies. A defect had occurred during the defects period, but was not notified to the contractor. The employer/contract administrator arranged for the defect to be rectified by another contractor and the monies were deducted from the retention held. The contractor sued the employer for money owed.

The court's decision was that the lack of notification did not remove the employer's right to damages, but affected the amount that could be recovered as it was argued that the contractor could have rectified the works cheaper than the third party which undertook them. Therefore, it is essential that when instructing others to rectify defects, the client is aware that the damages may not necessarily equate to the actual cost of the works they have to pay.