Source: All England Reporter
Publisher Citation: [2002] All ER (D) 66 (Jan)
Court: Technology and Construction Court
Judge:

Judge Richard Havery QC

Representation Marcus Taverner QC and Alexander Nissen (instructed by CMS Cameron McKenna) for A.
  David Streatfield-James and Robert Clay (instructed by Watson Farley & Williams) for SCL.
Judgment Dates: 15 January 2002

Catchwords

Estoppel - Convention - Parties to sub-contract adopting conventional basis for their relations - Criteria for certificate of substantial completion satisfying criteria for payment of bonus - Certificate of substantial completion and certificate of entitlement to bonus issued - Whether defendant estopped from resiling from bonus certificate having accepted benefit under certificate of substantial completion.

The Case

The court ruled that the defendant was estopped by convention from denying its liability to pay a bonus to the claimants, because the convention between the parties that the bonus was payable was part of a larger convention from which the defendant had derived a benefit, and, considering the position of the defendant, fairness or justice could not allow it to accept the benefits of the larger convention whilst disavowing their liability to pay the bonus.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.