09 May 2008

Derek Vago wins arbitration against Wimbledon Construction Company

Longstanding Mishcon de Reya client Derek Vago has won a substantial claim against the Wimbledon Construction Company 2000 Limited (WCC).

The case concerned wrongful charging and substantial delays arising from a construction agreement between Mr Vago and WCC. The Technology and Construction Court considered an early aspect of the case where the Court ruled on the effect of the financial status of WCC.

Following this decision, Mr Vago fought the main arbitration proceedings, to overturn initial findings of an adjudicator, to defend and overturn inflated and wrongful charges and to demonstrate defective work carried out by WCC.

In a lengthy decision, the arbitrator set aside a swathe of the adjudicator's findings and dismissed entirely the claims advanced by WCC in the arbitration.

The arbitrator:

  • Ordered a payment by WCC to Mr Vago for significant overcharging;
  • Declared that WCC owed substantial liquidated and ascertained damages to Mr Vago;
  • Ordered that WCC owe damages to Mr Vago for defects in workmanship;
  • Dismissed WCC's  claims in their entirety.

Derek Vago said "This was a matter of principle for me and I am pleased that my team at Mishcon have fought so tenaciously to achieve this win".  Nick Doffman, Head of Real Estate at Mishcon de Reya, added "This is the result we expected. It is always regrettable when disputes cannot be resolved without proceedings but this was not a matter that could be allowed to stand. We are very pleased that the arbitrator has found in Derek's favour. "