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E Turner and Sons Ltd v Mathind Ltd

01 December 2015

Citation: 5 Const LJ 273

Nature of case: The parties entered into JCT private edition contract with quantities (1963). The tender documentation for the development fixed liquidated and ascertainable damages at the rate of £1000/week and also consecutive completion of parts of the work. The architect issued an interim certificate for payment which set off damages at the contract rate for liquidated damages. Turner applied for summary judgement to recover the monies deducted from the certificate; Mathind appealed. Allowing the appeal, the court held that the contractual completion clause must be construed in context of the contract as a whole; liquidated damages should not be construed as a penalty; and the figure agreed must be a genuine pre-estimate of the loss like to be suffered.