Cases - West Faulkner Associates v Newham LBC

Record details

Name

West Faulkner Associates v Newham LBC

Date

[1992]

Citation

EGCS 139

Keywords

Contract administration

Summary

The appellant was a firm of architects who had been sued by the defendant council for failing to issue a contractual notice of termination under a JCT 1963 standard form of contract. Pursuant to clause 25(1)(b) of the same, the employer could terminate the contractor's employment if the contractor failed to 'proceed regularly and diligently with the works'.

Serious delays to refurbishment works occurred on site and, although the council communicated its opinion that the contractor's conduct was such that a notice under clause 25(1)(b) should be issued by the architect, the architect refused to do so. On appeal, the architect argued that for a notice to be issued, the contractor had to be in default both by failing to proceed regularly and by failing to proceed diligently. It was common ground that the contractor was proceeding diligently.

The Court of Appeal dismissed the architect's appeal, holding that no reasonably competent architect could have arrived at such an interpretation of clause 25(1)(b). Further, their Lordships ruled that unless the architect's construction of a contractual clause is plainly correct, the architect is under a duty to seek legal advice and/or to advise the employer that such advice be sought.