Repudiatory breach

Alan Auld Associates Ltd v Rick Pollard Associates and another CA SJ 27 May

The claimant had successfully tendered to provide project advice to an authority in relation to the removal of radioactive waste. The claimant entered into an oral agreement with the defendant to provide the advisory work at an hourly rate, with the defendant submitting monthly invoices. It was agreed that the claimant would invoice the authority and pay the defendant when it received payment. The defendant was partially retired and the work provided is only income. The claimant substantially delayed payment of 19 of the invoices, despite the fact that the Authority was a prompt payer and the defendant made repeated complaints. As a result of the continued delays, the defendant refused to carry out any further work. The claimant employed another company and issued proceedings for the losses incurred. The defendant counterclaimed for payments owed to him on the basis that the agreement had been terminated by acceptance of the claimant’s repudiatory breach of contract. The claimant contended that its conduct did not amount to a repudiation of the agreement because, despite delays, payments had been made to the defendant and the breaches were not sufficiently grave or severe.