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MOTT MACDONALD LTD v TRANT ENGINEERING LTD

Construction Law Reporter

MOTT MACDONALD LTD v TRANT ENGINEERING LTD

Contract – Construction of exclusion clause – Whether clause extends to a fundamental, deliberate or wilful breach of contract

The parties entered into a Settlement and Services Agreement in respect of a project to upgrade facilities at a military base. The claimant contended that it was owed money under the agreement while the defendant for its part maintained that it had a substantial counterclaim arising out of some breaches by the claimant of the agreement. The defendant alleged that these breaches had been committed “fundamentally, deliberately, and wilfully”. The claimant denied that it was in breach as the defendant alleged but in any event it submitted that it was entitled to rely by way of defence on an exclusion clause contained in the agreement. The defendant denied that the clause was effective to protect the claimant given the nature of the breaches which it alleged had been committed.

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