Wembley contractor Multiplex has won a million-pound dispute over its contract to build London’s tallest residential tower its second court victory this week.
The High Court has upheld an adjudication award ordering West India Development Co (WID) to pay Multiplex £1.28m, which WID had withheld following delays on the mixed-use scheme at 1 West India Quay, London E14.
The decision follows Monday’s ruling that Cleveland Bridge, Multiplex’s steel supplier on the £757m Wembley stadium project, had breached its contract by walking off the site in August 2004.
WID claimed that it was entitled to a stay on the adjudicator’s order, made in March, because the dispute over delays is ongoing. The complex, which houses a five-star Marriott hotel and 158 luxury apartments, was scheduled for completion in May 2004 but was not handed over until the following December.
WID alleged that Multiplex may not be able to repay the sum if it loses a subsequent trial, owing to the “substantial losses” that it has suffered over Wembley.
However, Justin Mort, counsel for Multiplex, said that the only circumstance in which Multiplex would be unable to repay the sum was “if it were in a serious insolvency position or in liquidation, and was no longer able to continue trading”.
“The implicit suggestion that a company of the claimant’s size would be unable to raise a sum of a little over £1.25m, if required to do so, is an absurd one,” he said.
Mort also claimed that the fact that Multiplex executive chairman John Roberts resigned in May 2005, allegedly because of the company’s financial situation, was “irrelevant to its ability to meet its debts as they fall due”.
Agreeing, Ramsey J said that despite Multiplex’s “large losses” on the Wembley project, the company continued to receive cash injections from its Australian parent, whose turnover in 2005 exceeded £320m.
“There is no evidence to lead me to the conclusion that such support is likely to be withdrawn,” he said.
The judge also rejected arguments by WID that the adjudicator’s decision should be overturned on grounds of unfairness and apparent bias.
Multiplex Construction (UK) Ltd v West India Development Co (Eastern) Ltd Technology and Construction Court (Ramsey J) 8 June 2006.
References: EGi Legal News 08/06/06
