ARCADIS CONSULTING (UK) LTD v AMEC (BSC) LTD

2016] EWHC 2509 (TCC), Technology and Construction Court, Coulson J, 25 October 2016

Letter of intent - Existence of a simple contract - Whether contract contained a cap on the liability of the claimant

The claimant was employed by the defendant to carry out certain design works in connection with two large construction projects 'in anticipation of a wider agreement between the parties that did not materialise'. One of the projects involved the construction of a car park which had been completed but was alleged to be defective and in need of demolition. The cost of rebuilding the car park was alleged to be many millions of pounds. The claimant denied liability in respect of these defects but it also sought to rely on a cap on its liability which it claimed had been included in the contract between the parties. There were two principal issues in the present litigation before Coulson J. The first was whether or not the parties had entered into a legally binding contract in connection with the design of the car park. The second was whether the parties had agreed to cap the liability of the claimant.