Wembley subcontractor Cleveland Bridge has been granted leave to appeal the High Court’s findings in Multiplex’s £45m claim for breach of contract.
In June 2006, after a trial of preliminary issues in the High Court Jackson J said that steel supplier Cleveland had breached its contract by walking off the stadium site.
Providing a day-long judgment on 10 preliminary issues, Jackson J found in favour of Cleveland on some aspects, but, in relation to the main dispute, he held that the steel supplier was in breach by refusing to finish its work on the project in August 2004.
Cleveland appealed against four of the 10 issues that Jackson J had decided.
Granting permission to appeal on a narrow point May LJ said that, in his view, Jackson J was “not unarguably correct” in his construction of a supplemental agreement to the subcontract.
He went on to say that if Cleveland were successful on that point, it would open up the other points to appeal.
Multiplex, which blamed former subcontractor Cleveland for delaying the development of the 90,000-seat national stadium, is seeking £45m in damages, while Cleveland has countersued for £22m.
Multiplex Constructions (UK) Ltd v Cleveland Bridge UK Ltd and another Court of Appeal (May and Smith LJJ and Sir Martin Nourse) 20 December 2006.
George Bompas QC and Thomas Grant (instructed by Reid Minty) appeared for the appellant; the respondent was unrepresented.
References: EGi Legal News 21/12/06
