Following the Scottish decision in
Laing v Doyle (2004),
many in the construction world thought that the pursuit of global
claims would become easier. In essence, the
Laing v
Doyle approach is that where it can be shown that some of the
events that cause a delay or a loss are not actually the
responsibility of the employer, the global claim should not
necessarily fail, since it may be possible to apportion the loss as
between the causes for which the employer is responsible and other
causes, provided that sufficient evidence is presented.
However, there has been uncertainty about whether the
Laing v
Doyle approach to global claims would be accepted in the
English courts.
In the recent case of
London Underground v Citylink, the
TCC considered the approach set out in the decision of
Laing v
Doyle on appeal from an arbitrator's award. The
arbitrator had followed
Laing v Doyle, and his approach
was challenged in the TCC. It held that:
1. The
John Doyle approach was acceptable.
However, it is important to note that neither party contended
otherwise.
2. The pleading of causation (e.g. that a number of
events caused a total delay of X weeks) need not be over elaborate,
covering every possible combination of contractual events that
might exist or covering the delay that might be said to flow from
every possible combination of such events.
3. Where a global claim is advanced it will be for the
tribunal to determine whether there is a sufficient evidentiary
basis for showing a link between cause (e.g. breaches of contract,
variation instructions) and effect (i.e. delay, disruption,
increased cost, or any combination of those).
4. If a global claim fails, in the sense that the
tribunal (or indeed a court) does not accept that all of the
pleaded events caused a total delay of X weeks, this does not
necessarily mean that the claimant will be unsuccessful
overall. It may, for example, be open to the tribunal to find
that there were some events - for which the employer was
responsible - that caused the contractor to be delayed. If it
is clear that the contractor has been delayed by the employer, it
may be open to the tribunal to find that the contractor ought to
have been granted an extension of time of Y weeks (where Y < X),
and possibly also that it is entitled to compensation for that
period of delay.
One note of caution:
London Underground v Citylink should
not be seen as a ringing judicial endorsement for the
Laing v
Doyle approach to global claims. The case concerned the
review of an arbitrator's award. The grounds for reviewing
arbitrators' awards are very narrow. Just because it was
acceptable for the arbitrator to apply
Laing v Doyle, this
does not necessarily mean that it will be acceptable in proceedings
originated before a court (or another arbitrator or
adjudicator).
It seems, however, that it is unimportant whether a claim is given
the tag of "global claim", or some other description. What
matters in delay cases (and indeed
all cases)
is that the case is presented in sufficiently clear terms, and
above all that it is persuasive.
Reference:
London Underground Ltd v Citylink
Telecommunications Ltd [2007] EWHC 1749 (TCC)
http://www.bailii.org/ew/cases/EWHC/TCC/2007/1749.html