Clin v Walter Lilly
Citation:  EWCA Civ 490
The Appellant/Defendant succeeded in establishing, compared to the findings at first instance, a more limited scope of contractual responsibility on the part of an Employer under a Standard Form JCT Building Contract for obtaining necessary planning and conservation area consents for a residential development in Kensington.
The Court of Appeal rejected the Claimant/Respondent’s argument that there should be a strict implied term to the effect that any requirements of the local authority, whether legally justified or not, should be satisfied by the Employer and/or were necessarily at the Employer’s risk under the contract.
Instead it was found that an Employer is only under an obligation to use ‘due diligence’ to obtain any required planning consents.
In doing so, the Court of Appeal rejected the Claimant/Respondent’s case that, as a matter of principle and contract, all risks associated with obtaining planning consent (including delays on the part of the planning department in dealing with the same and any unlawful or capricious steps taken by the local authority that may delay a project) were carried by the Employer.