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Jurisdiction(s):
United Kingdom

Privy Council (Trinidad and Tobago): Abatement and fraud defences fail against interim payment certificates; factoring assignment a charge; contractor retains right to sue; summary judgment upheld

Published on: 30 October 2024

Published by a LexisNexis Construction expert
Legal News
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Article summary

Estate Management and Business Development Company Ltd v Junior Sammy Contractors Ltd (Trinidad and Tobago) [2024] UKPC 33

What are the practical implications of this case?

This decision examines when a party may invoke the defences of abatement or fraud to resist paying amounts certified as due under interim payment certificates. It also clarifies the difference between an outright assignment of all contractual rights (ie including the right to commence proceedings) and an assignment by way of charge, under which the Contractor remains able to bring proceedings to recover amounts owed.

What was the background?

Estate Management and Business Development Company Ltd (the Employer), a wholly owned state company incorporated in Trinidad and Tobago, entered into a contract dated 4 February 2015 with Junior Sammy Contractors Ltd (the Contractor). Under that agreement, the Contractor agreed to perform residential infrastructure works (the Works) for the Employer at the Caroni Savannah Residential Development Phase B (the Site), for a contract sum of TT$231,235,125.36. The Works were carried out between 4 February and 17 August 2015...

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