Squibb vs London Pleasure Gardens and London Borough of Newham
Citation: EWHC 3275 (TCC) (contract/no contract issues)
Nature of case:
London Pleasure Gardens (“LPG”) secured funding, in the form of a loan, from the London Borough of Newham (“LBN”) for the development of a site near the Olympic Park prior to the London 2012 Olympics. Events held on site were expected to generate significant revenue for LPG, who engaged Squibb to complete various works. That contract was one which, under the terms of the loan from LBN to LPG, was required to be in a form agreed by LBN, and required LBN’s approval for any payments under it in excess of £10,000. Squibb completed the work on time and applied for payment under the contract. LPG made only one payment, following which representatives of LPG, LBN and Squibb met to discuss terms of payment. Two further payments were made to Squibb after LBN released funds for that purpose. Thereafter, LPG went into administration, leaving outstanding the loan from LBN and various payments to Squibb.