McGee Group Ltd v Galliford Try Building Ltd

Citation: [2017] EWHC 238 (TCC)

The parties to a subcontract sought clarification from the court as to whether the damages recoverable by the Defendant for the Claimant’s delay and disruption were capped. Claims against the subcontractor could be brought in different ways under the contract: clause 2.21 dealt with ‘Practical Completeness and Lateness’, whilst clause 4.21 dealt with ‘Loss and Expense’. Clause 2.21B provided a cap: the subcontractor’s liability for direct loss and expense and damages shall not exceed 10 percent of the contract price. The Claimant successfully argued that that cap was not limited to claims arising under the ‘Practical Completeness and Lateness’ heading, but rather applied to all claims for loss and expense arising out of the Claimant’s delay and disruption.

The Defendant has sought permission to appeal.

Simon Hargreaves QC appeared for the Claimant.

Adrian Williamson QC appeared for the Defendant.

Judgment

Counsel

Adrian Williamson QC
Simon Hargreaves QC

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