Trafalgar House Construction (Regions) Limited v General Surety and Guarantee Co Limited
Trafalgar House Construction (Regions) Limited v General Surety and Guarantee Co Limited
- 1994
- Construction Industry Law Letter 1994 CILL 912-915(4) .
CA 22 February 1994. T were the main contractors for the construction of a leisure complex. They engaged K as the sub-contractor for groundworks. K procured a bond from G for 10% of the sub-contract sum. During the course of the work K went into receivership and T took over completion of the work and made a claim under the bond. The ORC found that the amount of damage sustained by T exceeded the amount and gave summary judgement for the full amount of the bond. G appealed. It was held that the bond imposed upon G an independent obligation to pay the damages sustained by T from the failure of the subcontractors to carry out the work. The bond did not create a guarantee in the ordinary sense. G argued that the sum payable should take into account all set-off and cross claims between the parties however CA held that G should pay the amount of the damages which T asserts is correct.
BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
CONDITIONAL BONDS
MERCERS V NEW HAMPSHIRE
ON DEMAND BONDS
PERFORMANCE BONDS
SUBCONTRACTORS
SURETIES
SURETY BONDS
CA 22 February 1994. T were the main contractors for the construction of a leisure complex. They engaged K as the sub-contractor for groundworks. K procured a bond from G for 10% of the sub-contract sum. During the course of the work K went into receivership and T took over completion of the work and made a claim under the bond. The ORC found that the amount of damage sustained by T exceeded the amount and gave summary judgement for the full amount of the bond. G appealed. It was held that the bond imposed upon G an independent obligation to pay the damages sustained by T from the failure of the subcontractors to carry out the work. The bond did not create a guarantee in the ordinary sense. G argued that the sum payable should take into account all set-off and cross claims between the parties however CA held that G should pay the amount of the damages which T asserts is correct.
BUILT ENVIRONMENT-BUILDING CONTRACT FORMS
CONDITIONAL BONDS
MERCERS V NEW HAMPSHIRE
ON DEMAND BONDS
PERFORMANCE BONDS
SUBCONTRACTORS
SURETIES
SURETY BONDS