Cases - Banque Paribas v Venaglas

Record details

Name

Banque Paribas v Venaglas

Date

(1994)

Citation

(unreported)

Keywords

Contract - building contract - work done - payment - termination of contract - valuation of work done - whether the contractor was entitled to reasonable remuneration for the work done - whether the contractor was entitled to payment for the work done based on a valuation assessed by reference to the open market value of the site

Summary

The claimant entered into an agreement with a developer for the redevelopment of a site it owned. The developer ran into financial difficulties, following which the claimant terminated the agreement. The work carried out had to be valued by an independent third party. The bank was the assignee of the developer's interest in the agreement. The bank argued that the value of the work required reasonable remuneration for the work done. The claimant contented that the value of the works should be assessed by reference to the open market value of the site as was attributable to the work done. The Court of Appeal agreed with the bank, and held that it was the valuation of the work done and materials supplied that was to be ascertained. The independent third party would be entitled to refer to the prices in the actual building contract between the developer and the building contractor, insofar as he considered it would assist.