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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> BBF Consultancy Group (A Firm) v Barratt Homes Ltd [2001] EWCA Civ 1155 (12 July 2001) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2001/1155.html Cite as: [2001] EWCA Civ 1155 |
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COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE QUEEN'S BENCH DIVISION
(HHJ WILLIAM CRAWFORD QC sitting as a High Court Judge)
Strand London WC2 Thursday 12th July 2001 |
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B e f o r e :
LORD JUSTICE JONATHAN PARKER
-and-
MR JUSTICE WILSON
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BBF CONSULTANCY GROUP (A FIRM) | Claimants/Respondents | |
- v - | ||
BARRATT HOMES LIMITED | Defendant/Appellant |
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Smith Bernal Reporting Limited
190 Fleet Street, London EC4A 2HD
Telephone No: 0207-421 4040/0207-404 1400
Fax No: 0207-831 8838
Official Shorthand Writers to the Court)
MR I LEEMING QC & MR G BLAKER (instructed by Messrs Robbins Olivey, Woking GU22 7UY) appeared on behalf of the Respondents.
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Crown Copyright ©
Thursday 12th July 2001
"Paul Minett and I were very pleased to meet with you and Roger Rippon on Monday 29th June 1998. You requested a Fee Proposal regarding the above project which I have pleasure in setting out as follows.
To undertaking all necessary work up to and including Stage D of the RIBA Plan of Work, i.e. Detailed Planning Application stage, our Fee, inclusive of all reasonable printing and travel etc, is £32,000 plus VAT."
" ... undertaking all necessary work associated with RIBA Plan of Work stages E, F and G ..."
"This Fee Proposal should not be taken as a precedent for any future work. The circumstances and requirements of projects are assessed on the individual merits with a view to offering our clients a competitive fee, commensurate with the quality of service required.
The above Fees are exclusive of VAT, payments to statutory and local authorities and courier charges when necessary or requested by the client. Our Appointment would be based on the RIBA Memorandum of Appointment in the absence of your own Form of Appointment.
Additional Fee Proposals for other services which we discussed at our meeting can be provided in due course including structural engineering and illustrations etc.
As indicated at our meeting, we are very keen to work with you on any other projects you may have within your area and we hope that our local government background and retained contacts with the local authorities within your geographical area may be of some benefit to your company on future projects. I note your request for our views on feasibility studies etc, and I can confirm that we do undertake feasibility work at risk in order to help our clients establish the viability of a project. I hope the above is satisfactory for your purposes and we look forward to hearing from you shortly."
"I have been passed your letter dated 1st July addressed to Gerry Boyle. Gerry is on holiday until 20th July and I have been asked to reply.
As far as your fee proposal is concerned for this project, I am sure Gerry will be very interested. I will leave him to reply to you in detail when he returns to the office, based on his knowledge of the Barratt's 'going rate' with other practices.
In the meantime, it would be very helpful if you would prepare a sketch proposal for the site, including just the land Barratt are actually acquiring, i.e. excluding the highway land across the frontage and taking account of the latest re-alignment of the junction with Chobham Road. Bearing in mind the amount of work your practice has already done on the scheme, I would hope that you might be able to do this within a fairly short time scale, and certainly by the time Gerry returns from holiday.
The mix of units that we are aiming to achieve is as follows ..."
"We are aiming to achieve as close to 100 units in total on the site as possible. This will inevitably involve an element of five storey on the frontage to emphasise the architectural statement on this prominent and prestigious site.
The rest I leave to you. If you wish to discuss this brief with me, please do not hesitate to telephone me on my mobile number this week ... I am also away next week for one week.
Please could you send me a copy of whatever sketch plan you produce for my Reading office at the same time as sending it to Gerry in this office."
"I refer to my letter dated 1st July 1998, to which I do not yet appear to have received a reply. Although I have had a semi-confirmation of our Appointment situation in a letter from Roger Rippon and accordingly we have commenced our instructions, nonetheless we need the reassurance of a commission document particularly as the resource commitment is increasing weekly.
I have over the last eight days tried to make contact with you to discuss the situation and indeed to arrange a meeting with you regarding the new site layout proposal. I am aware you have been exceptionally busy, and hence my fax. Your attention to confirmation of our appointment would however be greatly appreciated and similarly if you could let me know when we could discuss the content of the proposed scheme as we are currently showing it."
"As I am sure you gathered from our telephone conversation on 3rd August 1998 I was very disappointed and concerned to learn that you have now decided to continue the above scheme with another practice.
At our interview with you in late June you clearly indicated your satisfaction with our presentation and that it was your intention "to run with us". Furthermore your Mr Rippon's letter to us at the beginning of July enclosed the house types you wished us to use and requested that our layout drawings be forwarded to his Reading office. Clearly he was under the same impression as we were that we were your Architects for this project and were undertaking work on your behalf. During July a considerable amount of staff resource has been devoted to progressing the scheme to detailed planning stage. Indeed following further tree survey information from Woking I had staff working all last weekend. For over a week I have repeatedly tried to contact you as a result of a phone conversation with your Mr Rippon on 27th July 1998. He had directed me to you with regard to our Appointment documentation, and he was now advising that the layouts should go to you with a copy to him, as it was necessary to discuss with you client option issues which had arisen during the preceding 3 or 4 weeks.
It is often the case that Architects proceed in good faith ahead of receiving formal Appointment documentation in order to assist clients in achieving their timescales. That is precisely what we have done on your behalf. Having regard to the fact that we were close to the point of being able to make a detailed planning application could you please confirm that in the circumstances you will be prepared to reimburse our reasonable costs incurred together with the loss of profit occasioned by your company's change of mind."
"When we met on 29th June, both Gerry and I quite clearly stated that no firm decision had then been taken on which architects to appoint for the scheme. You made an interesting presentation and Gerry indicated that he would consider using your services on this or some other occasion and invited you to quote for the work. At this meeting you also indicated you were prepared to produce feasibility sketches for this and any other projects at risk in the same way as most architects are prepared to do nowadays. You confirmed your fees by letter dated 1st July, in which you re-confirmed your willingness to undertake feasibility work at risk. I sent you a holding response on 6th July whilst Gerry was on holiday, inviting you to provide a sketch proposal based on the requirements set out in my letter using your knowledge of the site.
After Gerry returned from holiday the whole approach to this site was considered in detail at a board meeting. At this meeting it was decided to appoint another firm of architects who are particularly familiar with the requirements of this company as far as such schemes are concerned, and whose work programme enables them to produce application drawings very quickly.
When we spoke on 27th July, I gained the clear impression from you that little, if any, work had been done on the sketch proposals whilst you had been away and I suggested you speak to Gerry about your appointment. It is only unfortunate you were unable to make contact with him and in any event we certainly would not have expected you to press ahead with preparing drawings for ... planning application at that stage without us having the opportunity to comment on sketch proposals and your firm being properly commissioned.
In the circumstances it is unfortunate that you have seen fit to carry out so much work at your own risk. It was never intended by us that you should do so and I regret any inconvenience it may have caused you."
"Further to your letter on 4th August. I fully understand your disappointment in not being able to continue with the above scheme given your long involvement with the proposals to develop the site.
I regret that you feel that Mr Rippon's letter enclosing house types was in some way confirming your appointment, and this unfortunate misunderstanding has led you to believe you were to proceed with this whilst Mr Rippon's view is that he was expecting to receive feasibility sketches, which you were prepared to produce "at risks" as is common in today's housing market.
I do not believe these were ever seen by him and as a result I have some difficulty with your assertion that you were close to the point of being able to make a detailed planning application. I firmly believe this has just been a genuine misunderstanding and believe that there will be other opportunities in the future. I regret that I cannot accept responsibility for either your costs or your loss of profit in respect of this site.
I hope you will accept this as an unfortunate misunderstanding and put it down to part of life's colourful tapestry."
"If, whatever a man's real intention may be, he so conducts himself that a reasonable man would believe that he was assenting to the terms proposed by the other party and that other party upon that belief enters into the contract with him, the man thus conducting himself would be equally bound as if he had intended to agree to the other party's terms."
"The above fees are exclusive of VAT based on the RIBA Memorandum of Appointment in the absence of your own form of appointment."