Mooney v Henry Boot Construction (No.1)
Citation: C.L.C. 183; 80 B.L.R. 66; 53 Con. L.R. 120; (CA)
Nature of case:
This appeal, brought by the sub-contractor Mooney, was concerned with the interpretation of a clause in the FCEC form of contract, which required Henry Boot Construction to:
“take all reasonable steps to secure from the Employer such contractual benefits, if any, as may be claimable in accordance with the Main Contract on account of any adverse physical conditions or artificial obstructions or any other circumstances that may affect the-execution of the Sub-Contract Works … On receiving any such contractual benefits from the Employer (including any extension of time) the Contractor shall in turn pass on to the Sub-Contractor such proportion if any thereof as may in all the circumstances be fair and reasonable.”
At issue was whether the “contractual benefits” referred only to benefits which were due under the Main Contract, and whether some other entitlement, independent of that clause, was required under the Sub-Contract to found a claim.
The Court of Appeal answered both questions in the negative. If recovery under the clause were limited to only those contractual benefits that were due under the Main Contract, that may give rise to a difficult question of law or fact in the execution of the Sub-Contract. All that was required was that the contractual benefits could be claimed in good faith. Further, no independent entitlement was required under the contract; the plain meaning of the words created a clear obligation on the part of Henry Boot to pass on a proportion of contractual benefits received.
