Repudiatory breach

Mayhaven Healthcare Ltd v (1) David Bothma (2) Teresa Bothma (T/A DAB Builders) [2009] EWHC 2634 (TCC) QBD 26 October

The defendant agreed to carry out works to a nursing home in two phases. Phase one was the demolition of part of the nursing home and the construction of a three-storey extension to increase the number of beds. Phase two consisted of building an extra storey above an existing wing to further increase the number of beds. Disputes arose between the parties and were referred to adjudication, as a result of which the claimant was directed to pay certain sums to the defendant. The defendant, contending that the claimant had failed to pay those sums, suspended work. The claimant contended that the suspension was a repudiatory breach of contract. The defendant commenced arbitration proceedings which resulted in an award that included loss of profit to the claimant for the delay in completion of the works, which led to the loss of use of rooms at the nursing home but a finding that there had been no repudiatory breach.