Birse Construction Ltd v McCormick (UK) Ltd
Birse Construction Ltd v McCormick (UK) Ltd
- 2004
[2004] EWHC 3053 9 December 2004. Considered whether a cause of action was statute-barred because it had arisen more than six years before proceedings were issued. B sought damages from M for additional site establishment costs incurred during work at M's premises under the terms of a building contract. These costs had comprised a number of separate events which had occurred in the year to November 1996. Two preliminary issues had to be decided, firstly the date of accrual of B's cause of action, and secondly, whether B had a separate cause of action against M's managing agents, F, due to F's alleged failure properly to assess, estimate or agree B's contractual claims. B argued that its cause of action in respect of the additional costs did not accrue until F had issued a notice of acceptance of the work. "Held": By the terms of the contract, B's cause of action accrued on each individual claim once the event triggering the claim had occurred, and F had rejected or promptly failed to respond to it. Therefore the causes of action, which had accrued in late 1996, were statute-barred. Secondly, even if B had a separate cause of action on the basis that F or M had failed to properly assess, estimate or agree B's entitlement, it would still have accrued at the same time as the date the claim was, or was deemed to be, rejected, and therefore was similarly statute-barred.
BIRSE CONSTRUCTION LTD V MCCORMICK (UK) LTD
MILESTONE PAYMENTS
[2004] EWHC 3053 9 December 2004. Considered whether a cause of action was statute-barred because it had arisen more than six years before proceedings were issued. B sought damages from M for additional site establishment costs incurred during work at M's premises under the terms of a building contract. These costs had comprised a number of separate events which had occurred in the year to November 1996. Two preliminary issues had to be decided, firstly the date of accrual of B's cause of action, and secondly, whether B had a separate cause of action against M's managing agents, F, due to F's alleged failure properly to assess, estimate or agree B's contractual claims. B argued that its cause of action in respect of the additional costs did not accrue until F had issued a notice of acceptance of the work. "Held": By the terms of the contract, B's cause of action accrued on each individual claim once the event triggering the claim had occurred, and F had rejected or promptly failed to respond to it. Therefore the causes of action, which had accrued in late 1996, were statute-barred. Secondly, even if B had a separate cause of action on the basis that F or M had failed to properly assess, estimate or agree B's entitlement, it would still have accrued at the same time as the date the claim was, or was deemed to be, rejected, and therefore was similarly statute-barred.
BIRSE CONSTRUCTION LTD V MCCORMICK (UK) LTD
MILESTONE PAYMENTS