CONTRACTORS NOT ENTITLED TO INTERIM INJUNCTION AGAINST PROJECT MANAGERS

Costain Ltd & Others v Bechtel Ltd & Another [2005] EWHC 1018 (TCC) (unreported, 20 May 2005)

In Costain Ltd & Others v Bechtel Ltd & Another [2005] EWHC 1018 (TCC) (unreported, 20 May 2005), Mr Justice Jackson held, in an application by contractors for various interim injunctions, that it was at least arguable that, when assessing sums payable to a contractor, a project manager’s duty was to act impartially as between employer and contractor. The applicant contractors had shown that there were serious issues to be tried in their claims against the defendant project manager; they had therefore satisfied the threshold test for the grant of an interim injunction in American Cyanamid Co v Ethicon [1975] AC 396 at 409D. However, in the circumstances, this was not an appropriate case in which to grant such an injunction. Firstly, an injunction was unnecessary; if the project manager made incorrect assessments, there were perfectly adequate remedies and dispute resolution procedures available under the contract. Secondly, if the applicants were successful in their substantive claim, damages were an adequate remedy. Finally, the proposed injunctions would require continual supervision by the courts and would unfairly affect third parties.