Water treatment specialists launches legal battle over unpaid claims

Construction Degremont has launched a £200,000 legal battle against Galliford Try Construction and Costain.

Galliford Try and Costain, trading as Galliford-Costain Joint Venture, entered into a series of contracts with Degremont, which specialises in water treatment plants.

The two sides agreed to settle all financial claims and entitlements under the contracts through a deed of settlement in December 2006, according to a High Court writ.

As a result, Galliford-Costain Joint Venture agreed to pay Degremont £1,560,030.46 by December 15 last year, but was entitled to keep back £125,000 plus VAT until April 7, the writ says.

But in breach of the deed, Galliford-Costain Joint Venture failed to pay the full amount due, and has retained £346,875, the court will hear. Degremont says its losses amount to £200,000, which is the unpaid sum, less £125,000 plus VAT.

Now Degremont is seeking payment of £200,000 and interest of 2% over LIBOR rates.

The writ was issued by Lovells, ref Emma Archibald.