Construction cases: Contractual bar on claim for damages (Strachan & Henshaw Limited v Stein Industrie (UK) Limited and GEC Alsthom Limited, 1997)

United Kingdom

Contractual Bar on Claims for Damages

The Court of Appeal considered the meaning of Condition 44.1 of the Model Form General Conditions of Contract (MF/1) in Strachan & Henshaw limited -v- Stein Industrie (UK) Limited and GEC Alsthom Limited (1997). It was held that the natural meaning of Condition 44.4 was to bar a party's right to bring claims outside MF/1 by way of a claim for breach of contract or misrepresentation. The result is that the contractual provisions of MF/1 are exhaustive of the parties' rights to claim additional monies. Consequently any parties seeking to claim under MF/1 must frame their claims within the meaning of MF/1.