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Olga Mirimskaya v George Evans and Dezigner Living Ltd [electronic resource]

Language: English Publication details: 2007Subject(s): Online resources: Summary: [2007 EWHC B11 (TCC), 5 September 2007. States that where an employer wrongfully terminates a contract, the contractor will normally be entitled to receive payment of monies due as advance payments, even though the relevant works have not been finished. M claimed sums from E, who was the owner of a property development company Dezigner Living(D) that had carried out refurbishment works on M's property. D counterclaimed for unpaid invoices. Initially, advance monies were agreed to keep the contractors in funds as the works progressed. M asked E to account for monies received and also for a formal contract. She refused to pay more until a schedule of payments linked to works was agreed. This did not happen. D and E refused to continue without further payments. M ejected D from the site and changed the locks. Each party alleged the other had repudiated the contract. Held: Mirimskaya had entered into two binding agreements which provided for advance payments so that the contractors could be kept in funds as the works progressed. M had repudiated the contract. However, it did not follow that D was entitled to be paid the remaining sums owed in respect of advance work to be carried out. No work had been done by D in relation to these costs. Thus there was a total failure of consideration in respect of the remaining costs and no damages due. D were entitled to the alternative claim for damages representing the loss of profit it would have made on completion of the works from M.
Holdings
Item type Current library Call number Copy number Status Barcode
Law report Virtual Online ONLINE PUBLICATION (Browse shelf(Opens below)) 1 Available 140944-2001

[2007 EWHC B11 (TCC), 5 September 2007. States that where an employer wrongfully terminates a contract, the contractor will normally be entitled to receive payment of monies due as advance payments, even though the relevant works have not been finished. M claimed sums from E, who was the owner of a property development company Dezigner Living(D) that had carried out refurbishment works on M's property. D counterclaimed for unpaid invoices. Initially, advance monies were agreed to keep the contractors in funds as the works progressed. M asked E to account for monies received and also for a formal contract. She refused to pay more until a schedule of payments linked to works was agreed. This did not happen. D and E refused to continue without further payments. M ejected D from the site and changed the locks. Each party alleged the other had repudiated the contract. Held: Mirimskaya had entered into two binding agreements which provided for advance payments so that the contractors could be kept in funds as the works progressed. M had repudiated the contract. However, it did not follow that D was entitled to be paid the remaining sums owed in respect of advance work to be carried out. No work had been done by D in relation to these costs. Thus there was a total failure of consideration in respect of the remaining costs and no damages due. D were entitled to the alternative claim for damages representing the loss of profit it would have made on completion of the works from M.