Cases - Mowlem PLC v PHI Group Ltd

Record details

Name

Mowlem PLC v PHI Group Ltd

Date

[2004]

Citation

BLR 421 TCC

Keywords

Contract - contract for earthworks and design and construction of retaining walls - supply of a crusher -payment for the crusher - whether the claimant was entitled to be paid for the supply of the crusher pursuant to an implied term - whether the claimant was entitled to be paid for the supply of the crusher on a quantum meruit basis

Summary

The claimant subcontracted earthworks and the associated design and construction of retaining walls to the defendant. One issue between the parties was the claimant's claim for the cost of the supply to the defendant of a crusher and of attendant plant for use by the defendant.

The arbitrator rejected this claim on the basis of lack of legal entitlement, finding that there was no express agreement by the defendant to pay for the crusher and that none was to be implied. The arbitrator also rejected a claim for payment based on a quantum meruit because there had been a considerable benefit to the claimant in putting lumps of concrete through the crusher, thereby rendering it suitable for use as fill, when otherwise the claimant would have had to pay for it to be carted away off site. The Court confirmed, on appeal, that the correct legal position was that it was for the claimant to establish that in all the circumstances it was entitled to be paid for the crusher. The finding was that the supply was, as a matter of fact, for the mutual benefit of the parties and thus there had been no error in law in rejecting the quantum meruit claim.