Fenwick Elliott LLP wins landmark case for Multiplex

Mr Justice Jackson has handed down the latest judgment in the litigation concerning Wembley Stadium in London.  Multiplex, represented by Fenwick Elliott LLP, has been in dispute with several subcontractors following a negotiated settlement with the principal in October 2006.

Multiplex entered into a subcontract with Honeywell for various electronic systems for £13.4M, and claimed that Honeywell was responsible for considerable delay.  There were a number of adjudications, and in the third adjudication, the Adjudicator held that time had been set at large under the subcontract.  Multiplex disagreed and commenced proceedings seeking a declaration that time had not been set at large.

Multiplex succeeded in the High Court in London.  Mr Justice Jackson construed the contract terms by resolving ambiguities in favour of the contractual extension of time mechanism, and accordingly, time had not been set at large.  The Court considered the Australian decision in Gaymark Investments v Walter Construction [1999] NTSC 134, and said that:

"Whatever may be the law of the Northern Territory of Australia, I have considerable doubt that Gaymark represents the law of England."

The case is important as marking a new determination by the courts to shore up the effectiveness of extension of time provisions in construction contracts, and to limit the extent to allow these contractual mechanisms to be shattered by time at large or contract mechanism arguments.