“The breaches identified at paragraphs 11 and 17 of the Termination [Notice] go to the heart of the Agreement. They are fundamental obligations relating to the remediation required to make the Property safe. The breaches are material and irremediable in that there is was [sic] no prospect of the Works being completed by the deadline imposed by the Order and the Agreement. Further, the breaches have deprived [Wallace] of substantially the whole benefit of the Agreement.”
“As at the date of this letter, after nearly a year, Durkan has still not complied with its obligation to provide Wallace a complete and comprehensive copy of the plans and specifications required for remediating the defects at the building within a reasonable period of time (or at all) in breach of Schedule 1, paragraph 4.1. … In the circumstances, Durkan is in clear breach of its obligations: (a) to diligently perform its duties and obligations under the Agreement and in respect of the Services; (b) to use the Required Standard to avoid or minimise delay to the execution of the Services and the Works; (c) to procure that the Services (and Works) should be designed, carried out and completed using the Required Standard, with due diligence and by the Completion Date.”
“The court may give summary judgment against a claimant or defendant on the whole of a claim or on an issue if— (a) it considers that the party has no real prospect of succeeding on the claim, defence or issue; and (b) there is no other compelling reason why the case or issue should be disposed of at a trial.”
“i) The court must consider whether the claimant has a “realistic” as opposed to a “fanciful” prospect of success: Swain v Hillman[2001] 2 All ER 91 ; ii) A “realistic” claim is one that carries some degree of conviction. This means a claim that is more than merely arguable: ED & F Man Liquid Products v Patel[2003] EWCA Civ 472 at [8] iii) In reaching its conclusion the court must not conduct a “mini-trial”: Swain v Hillman iv) This does not mean that the court must take at face value and without analysis everything that a claimant says in his statements before the court. In some cases it may be clear that there is no real substance in factual assertions made, particularly if contradicted by contemporaneous documents: ED & F Man Liquid Products v Patel at [10] v) However, in reaching its conclusion the court must take into account not only the evidence actually placed before it on the application for summary judgment, but also the evidence that can reasonably be expected to be available at trial: Royal Brompton Hospital NHS Trust v Hammond (No 5)[2001] EWCA Civ 550 ; vi) Although a case may turn out at trial not to be really complicated, it does not follow that it should be decided without the fuller investigation into the facts at trial than is possible or permissible on summary judgment. Thus the court should hesitate about making a final decision without a trial, even where there is no obvious conflict of fact at the time of the application, where reasonable grounds exist for believing that a fuller investigation into the facts of the case would add to or alter the evidence available to a trial judge and so affect the outcome of the case: Doncaster Pharmaceuticals Group Ltd v Bolton Pharmaceutical Co 100 Ltd[2007] FSR 63 ; vii) On the other hand it is not uncommon for an application under Part 24 to give rise to a short point of law or construction and, if the court is satisfied that it has before it all the evidence necessary for the proper determination of the question and that the parties have had an adequate opportunity to address it in argument, it should grasp the nettle and decide it. […] However, it is not enough simply to argue that the case should be allowed to go to trial because something may turn up which would have a bearing on the question of construction: ICI Chemicals & Polymers Ltd v TTE Training Ltd[2007] EWCA Civ 725 .”
“Breaches of contract entitling the innocent party to treat the contract as at an end may be classified as follows: (i) Breach of condition; (ii) Repudiatory breach, ie, an actual breach of an innominate term where the consequences are such as to entitle the innocent party to treat the contract as at an end; (iii) Renunciatory breach, ie, an anticipatory breach of contract (ie, in advance of the due date for performance), where the other party makes clear to the innocent party that it is not going to perform the contract at all or is going to commit a breach of a conditionoris going to commit a breach of an innominate term and the consequences will be such as to entitle the innocent party to treat the contract as at an end; in each case here, the innocent party has an election to accept the renunciatory breach at once and to terminate the contract, without waiting for the due date of performance: see, Burrows, [A Restatement of the English Law of Contract (2016)], at pp 116–117.” (i) Breach of condition; (ii) Repudiatory breach, ie, an actual breach of an innominate term where the consequences are such as to entitle the innocent party to treat the contract as at an end; (iii) Renunciatory breach, ie, an anticipatory breach of contract (ie, in advance of the due date for performance), where the other party makes clear to the innocent party that it is not going to perform the contract at all or is going to commit a breach of a conditionoris going to commit a breach of an innominate term and the consequences will be such as to entitle the innocent party to treat the contract as at an end; in each case here, the innocent party has an election to accept the renunciatory breach at once and to terminate the contract, without waiting for the due date of performance: see, Burrows, [A Restatement of the English Law of Contract (2016)], at pp 116–117.”
“…does the occurrence of the event deprive the party who has further undertakings still to perform of substantially the whole benefit which it was the intention of the parties as expressed in the contract that he should obtain as the consideration for performing those undertakings?”
“[50] The trouble with expressing important propositions of English law in metaphorical terms is that it is difficult to be sure what they mean. As the High Court of Australia majority judgment pointed out in Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd(2007) 233 CLR 115 at [54] to describe a breach as ‘going to the root of the contract’ is ‘a conclusory description that takes account of the nature of the contract and the relationship it creates, the nature of the term, the kind and degree of the breach, and the consequences of the breach for the other party’. [51] Whatever test one adopts, it seems to me that the starting point must be to consider what benefit the injured party was intended to obtain from performance of the contract. […] [52] The next thing to consider is the effect of the breach on the injured party. What financial loss has it caused? How much of the intended benefit under the contract has the injured party already received? Can the injured party be adequately compensated by an award of damages? Is the breach likely to be repeated? Will the guilty party resume compliance with his obligations? Has the breach fundamentally changed the value of future performance of the guilty party’s outstanding obligations?”
“…Rather, in deciding whether by its conduct a party evidences an intention not to be bound by the terms of the contract, the way in which parties agree to treat breaches within the terms of their contract must be a factor to take into account. In particular, if a breach of a term had to reach a degree of seriousness before a contractual termination clause could be applied, it is unlikely that a breach which was less serious would, by itself, amount to a repudiatory breach. Equally, the fact that for a particular breach the contract provided that there should be a period of notice to remedy the breach would indicate that the breach, without the notice would not, in itself amount to a repudiatory breach.”
“Where time was not originally of the essence of the contract, but one party has been guilty of delay, the other party may give notice requiring the contract to be performed within a reasonable time. Notice can be served at the moment of breach; it is not necessary to wait until there has been an unreasonable delay by the party in breach before service the notice. The period of notice given must, however, be reasonable and what is reasonable will depend upon all the facts and circumstances of the case. Factors to which the courts will have regard in assessing the reasonableness of the period of notice include what remains to be done at the date of the notice; the fact that the party giving notice has continually pressed for completion, or has before given similar notices which it has waived, or that it is especially important for it to obtain early completion”
“…such an obligation was not a condition such that breach of it would automatically entitle Shawton to determine the contracts. Shawton could only in law legitimately determine the contracts for delay if either: (a) They gave reasonable notice making time of the essence or (b) DGP’s failure to complete within a reasonable time was a fundamental breach such that the gravity of the breach had the effect of depriving Shawton of substantially the whole benefit which it was the intention of the parties that they should obtain from the contracts. Where time is not of the essence and where the party said to be in breach by delay is nevertheless making an effort to perform the contract, it is intrinsically difficult for the other party to establish a fundamental breach in this sense.”
“The innocent party will not be held to have elected to affirm the contract unless, first, it has knowledge of the facts giving rise to the breach, and, secondly, it has knowledge of its legal right to choose between the alternatives open to him. When deciding whether the innocent party has affirmed the contract, a court is not conducting a “mechanical exercise” but is exercising a judgment… Affirmation may be express or implied. It will be implied if, with knowledge of the breach and of its right to choose, the innocent party does some unequivocal act from which it may be inferred that it intends to go on with the contract regardless of the breach or from which it may be inferred that it will not exercise its right to treat the contract as terminated… Equally a party cannot affirm the contract for a limited period of time and then abrogate it on the expiry of that period of time. Mere inactivity after breach does not of itself amount to affirmation, nor (it seems) does the commencement of an action claiming damages for breach. The mere fact that the innocent party has called on the party in breach to change its mind, accept its obligations and perform the contract will not generally, of itself, amount to an affirmation: “… the law does not require an injured party to snatch at a repudiation and he does not automatically lose his right to treat the contract as discharged merely by calling on the other to reconsider his position and recognize his obligation.”
“Nevertheless, in the case of a breach which is persisted in by the other party, the fact that the innocent party has continued to press for performance will not normally preclude it at a later stage from terminating the contract. In such a case the innocent party is not terminating on account of the original repudiation and going back on its election to affirm but rather is “treating the contract as being at an end on account of the continuing repudiation reflected in the other party’s behaviour after affirmation. Nor, in the case of an ongoing contract, will affirmation in respect of one breach preclude the innocent party from terminating further performance of the contract by reason of further subsequent breaches.”
“A further revision of the programme was issued in October. This programme was the same as the programme issued in March in providing for a 68 week construction period and again used week numbers rather than fixed dates. The issue of the programme at this stage reinforced the fact that the September 2025 date would not be achievable. I held regular meetings with Ms McQueen-Price and Ms Chambers, during which no objection to the programme was raised, other than that [Wallace] wanted dates to be applied, and we told them we could not, which again, they understood and accepted. [Wallace] had a number of other ongoing remediation projects and was well aware of the inherent uncertainty surrounding the timing of the design and the Gateway 2 application. We discussed this with [Wallace] repeatedly at meetings.” (2) At meetings between the parties held on16 October 2024 and also6 November 2024 , “Durkan confirmed that the current programme would not be re-issued until the Fire Alarm and BSR submission have been concluded. Until this time, no dates can be confirmed.”
“Ms McQueen-Price [sic] confirmed that the dates on the current programme were not going to be met given where we were, which I took to mean the referenced September date given the programme did not contain dates and we had already agreed Durkan’s programme. However, this was not said by Ms McQueen Price [sic] in a way that was critical of Durkan: it was just accepted as a fact because we were now all working to Durkan’s programme. At this meeting [Wallace] were seeking an updated programme to include a construction start date. We reiterated that the current programme would not be re-issued until the BSR submission had been concluded and that until this time no dates could be confirmed. However relevant individuals within [Wallace] including Ms McQueen-Price [sic] and Ms Chambers accepted and agreed that neither the RO nor RWA date was going to be met.” (3) During a meeting held between the parties on8 January 2025 , it was further agreed that there were no further comments on the Master Programme at this time and that the timescale would be confirmed “once gateway 2 has gone though this can be actioned.” (4) the contemporaneous documents show that Wallace’s team continued to operate on this footing well into 2025. Mr Barton’s evidence was: “I did not consider that the programme committed Durkan to having the design completed or the BSR application finalised by19 September 2025 . The 68-week period related to the construction works themselves, not the period needed to complete the design and Gateway 2 process. I am confident from my recollection that the deadline of 19 September was never raised in any meeting I attended. I have reviewed contemporaneous documents that support this. For instance, in an email of12 March 2025 from Sam Gumble, Simarc, to Nigel Shields (Durkan), Sam refers to Excel attending site for final inspections and to thereafter share a full specification. Sam says "On receipt of the specification, Durkan to produce a high-level project programme. Dates TBC based on BSR approval time but should provide an indication of programme length." This seems to me to clearly show that Simarc/[Wallace] understood the basis on which the Master Programme in March 2024/October 2024 was issued i.e. that time only began to run from BSR approval and dates could not be applied at this stage. My review of the matter is that this was what was relayed to [Wallace] all along.”
“There was no suggestion during those discussions that [Wallace] was dissatisfied with Durkan’s performance or intended to remove Durkan from the project. On the contrary, the impression given was that [Wallace] would present this information to the FTT in a neutral way to demonstrate that both parties had been working together as a team to facilitate the remediation of the building, but that they had been delayed by various factors outside of their joint control.”
“43. This was confirmed by Tenos ([Wallace]'s fire engineer) and Thomasons ([Wallace’s] consultant) at a technical meeting on3 June 2025 , which Nigel Shields attended on behalf of Durkan, but which was relayed at a client meeting the following day. At this client meeting Simarc (for [Wallace]) said: "SG advised the technical meeting took place on 03/06/25 between Simarc, Durkan, Excel, Part B, Thomasons and Tenos to discuss the outstanding points on the fire-stopping solutions. Excel provided solutions for standard and non-standard details with supporting evidence using FSI product datasheets. Thomasons/Tenos confirmed this was suitable – on the strict basis each application is completed in accordance with the manufacturer's installation instruction.”
“Termination of the Remedial Agreement is not the panacea that the Applicants portray. i. If the Remedial Agreement is terminated, then [Wallace] will have to consider how to engage Durkan’s subcontractors and design team, who may well not want to be novated to [Wallace]. ii. [Wallace] will also have to consider the intellectual property rights in the surveys and design work carried out to date. iii. A new party, such as Thomasons would have to be engaged. iv. Given how close Durkan is to the submission of a Gateway 2 application, [Wallace] is reasonable in allowing Durkan to continue at this point in time.”
“We also felt by this stage that we had little option other than to continue to engage with Durkan to complete the remediation programme, though our view on that is beginning to change. However, having discussed the option of Thomasons’ taking over the project, I feel that is not viable and that it would simply lead to a longer delay in starting work on site.”
“[Wallace] took the view that it should continue working with Durkan to progress the remediations. Let’s say today [Wallace] were to try to terminate the contract, this wouldn’t take us very much further and would possibly delay matters.”