This was an appeal from a decision of judge Coulson. The Judge held that Decoma UK Ltd could claim damages, subject to a cap, but could not claim under the contract.

Decoma was an operator of paint-spraying facilities and Haden Drysys International Ltd specialised in the design and construction of processed plants. The parties entered into a bespoke turnkey waterborne paint line agreement: Decoma as employer/owner and Haden as contractor.

Haden were obliged under the contract to carry out, design, construct and complete the work in a good and workmanlike manner in sufficient conformance with equipment performance specifications. Decoma alleged that Haden failed properly to complete work. Despite this, they took over and used the facility.

1 Did the warranties under the contract relate only to the period after final acceptance?

2 Did the breach of warranty provision in the contract give rise to a claim for damages rather than to an entitlement to payment under the contract?