Adyard Abu Dhabi v SDS Marine Services

Citation: BLR 384, 136 Con LR 190, (2011) 27 Const. LJ 594

Nature of case:
In Adyard Abu Dhabi v SDS Marine Services, the Commercial Court had to determine whether SDS could rescind two shipbuilding contracts and reclaim the sums it had paid to Adyard. Adyard had commenced proceedings, arguing that SDS could not rescind, as SDS had caused delays to the project.

Adyard cited the prevention principle: the principle that SDS could not rely on the consequences of its own default, when rescinding the contracts. The court found against Adyard in that respect, but went to look at whether Adyard had proved that SDS caused the delay to the project in any event. In doing so, the court considered the judgments of Lord Carloway and Lord Osborne in the Scottish appellate decision in City Inn v Shepherd. This post focuses on those causation issues.

Link to Judgment 

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Counsel

Adam Constable QC
Lucy Garrett QC

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