High court hears œ18m Mowlem claim

In a cramped seventh floor room, housed in what appears a modern 'office' block, barristers in Dickensian wigs and black gowns gaze at CD ROM-generated images and write notes on their laptops, reports David Nunn. Seated on a modest podium at the end of the room, Judge Bowsher holds a gloomy communion with two computer terminals. A large-screen colour PC throws up copies of documents from the Carlton Gate case, as Mowlem's QC reads his opening. Another screen produces a live on-line transcript of proceedings, complete with search and scroll facilities. There is little wonder the judge looks glum, working through Mowlem's 300 page opening 'statement' is expected to take two weeks. But it could be worse.

Without this ground-breaking gadgetry, he could be there a lot longer as solicitors and clerks fumble to find hard copies of the one million-odd documents seized in case preparation. As it is, the case is expected to take six months, it will require an army of barristers and solicitors, and notch up a legal bill of several millions.

Court room drama is so far thin on the ground: about the only distraction is the view of the Royal Courts of Justice through the window. Not that the authorities have made provision for a gallery of spectators. With bookcases and carousels of box files filling the cramped room, there is only a solitary desk at the back.

Taking the stand in the coming months will be most of Mowlem's senior managers and project team, as the court decides whether or not Mowlem's contract could or should have been contractually terminated. The question of interference with the architect is likely to see Peter Phippen emerge as an important witness. And on the question of Eagle Star's liabilities as a 50% shareholder in Carlton Gate, Ian MacInnes, properties chairman, is expected to give evidence. Declan Kelly, the Irishman whose failed development company began the project has given written statements and could also be called. The œ18.5 million legal battle over Carlton Gate - one of the biggest construction disputes ever to hit the High Court - has got underway with Mowlem claiming that defendants Eagle Star and architect Phippen Randall Parkes 'conspired' to force its unlawful dismissal from the scheme.

The hearing resumed on Monday with the contractor defending its record on the project. In Mowlem's opening submission, QC Charles Falconer told the court site delays were not due to Mowlem's poor performance, but the massive scale of design changes, and the inability of the design team to carry them out.

Quoting from Mowlem's architect expert witness, he said: 'The design team's designs were not co-ordinated, they made numerous changes, they made silly mistakes, they were indecisive, their information was late and they did not understand construction tolerances. Overall ... they lost control of the detailed design.'

Mowlem contends that because of a cash crisis on the project, in October 1989 Phippen Randall Parkes 'misapplied' the terms of the management contract to allow œ1.1 million to be withheld from Mowlem.

Later it claims Phippen Randall Parkes, on Eagle Star's instructions, issued a notice of default against Mowlem for delays, despite documents showing it had earlier been 'minded to give time extensions'. On 22 December 1989, Mowlem claims Eagle Star 'procured or persuaded' Phippen Randall Parkes to terminate Mowlem's contract.

The case continues.