PLUMBER CONTRACT

Aldgate Construction Company Ltd v Unibar Plumbing & Heating Ltd

Aldgate Construction Company Ltd v Unibar Plumbing & Heating Ltd

Case Summary

In the case Aldgate Construction Company Ltd v Unibar Plumbing & Heating Ltd the Technology and Construction Court has confirmed that a claim for loss of profit can include loss of opportunity as well as loss actually incurred.

In the case the developer sued the company for the loss in profit, which aroused due to the fire which was caught by the factory, after investigation it was concluded that the fire was a result of negligent plumbing contractor. The developer argued that had it not been for the fire it would have had the funds to construct dual developments (in accordance with its previous business model) instead of the single developments which it undertook in the period following the fire. The developer claimed for the loss of profits from three sets of dual properties, giving credit for the single developments it constructed instead. The claim was therefore not a claim for a loss actually incurred as a matter of fact but a loss of opportunity.

After the analysis of the case by the judge and keeping the facts in consideration which were presented by the developer the judge decided that all the losses which were suffered by the claimant was the result of initial breach of contract. In determining if, and to what extent, the claimant could recover its losses, the judge considered the following three questions:

Was loss claimed of a type or kind that would either: naturally arise from the breach; or have been in the contemplation of the parties at the time they made the contract as the probable result of the breach?

If the loss falls within one of the above categories, on the balance of probabilities, what element of that loss was actually caused by the breach?

Was any part of the loss caused by another event which was not reasonably foreseeable by the defendant at the date of the contract?

In the end, it seemed like that the judge was completely in favor of the verdict, that the defendant result occurred due to the loss of opportunity which occurred due to damages nearly causing a sum of 401,253 comprising the loss of profit on three properties and 50% of the marginal loss of opportunity to carry out a dual development, the judge concluded on the facts that only fifty percent of the chances were that of claimant who would claimant would have procured an adjacent plot if it had had the funds.

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