Tower Housing Association Ltd v Technical & General Guarantee Co Ltd
Citation: 87 B.L.R. 74
Nature of case:
Tower Housing engaged Deltamar Construction to undertake building works, under a contract that provided for a performance bond with Technical & General as the surety. Following the appointment of administrative receivers to Deltamar, the contract was terminated. Tower Housing employed an alternative contractor to complete the works, and notified Technical & General of their intention to call on the bond.
Under the wording of the bond, Tower Housing, applying for summary judgment, argued that Technical & General were obliged to make payment prior to completion of the works, whereas under the contract Deltamar would only have been liable to do so following completion.
HHJ Humphrey Lloyd QC held that the point was unsuitable for decision by way of summary judgment. Tower Housing’s argument was only an arguable proposition, and could not be dealt with shortly and summarily. An interim payment was ordered in respect of a small part of the claim which Technical & General could not sensibly deny.
