Fitzpatrick beats council in court

Fitzpatrick Contractors has won a victory over a local authority in the High Court after being sacked from a multi-million pound highways contract after only 13 days.

Mr Justice Dyson ruled that Bedfordshire County Council had repudiated the contract at a liability-only hearing in the newly-named Technology and Construction Court, a division of the High Court in London.

Now, the contractor, based in Hoddesdon, Herts, must formulate a financial claim, although the council's legal team said they would be considering an appeal.

The council invited tenders from Fitzpatrick's four other contractors and its own County Commercial Services (CCS) on 7 July 1995.

On 14 February 1996, the council accepted Fitzpatrick's tender and at a meeting it was agreed the commencement date would be 1 June 1996.

The four-year contract was for the construction, maintenance and clearance of all directly maintained highways in Bedfordshire for which the council was responsible.

Dyson said: "The council contends that Fitzpatrick repudiated the contract by wrongfully refusing to start work. Fitzpatrick Contractors admits that it refused to start work on 1 June, but asserts it was entitled not to start work on that date or was prevented from doing so."

Fitzpatrick Contractors claimed that the council had failed to make sufficient work available to it but in any event, it had not repudiated the contract.

Council officials said it was important that orders should be placed "in good time" to mobilise the necessary labour, and from 1 June, the council immediately made provisions for the continuation of highway maintenance by employing its CCS workforce.

In his judgement Mr Justice Dyson said: "I conclude Fitzpatrick did not repudiate the contract by not taking up its obligations and that the council did repudiate the contract."