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The City Inn decision – a common sense approach to development delay claims?

Overview

On 22 July in City Inn v Shepherd Construction the Inner House (Appeal Court) in Scotland gave a significant judgment on an important issue relating to the assessment of concurrent delays in awarding extensions of time.

The court's decision indicates that a ‘common sense’ approach should be adopted and if there is no dominant cause of the delay then it may be apportioned between competing events.

It is now over 10 years since the development which is the subject matter of this case was completed and the saga may not yet be over as there may yet be a further appeal to the Supreme Court. However for the present, the case is of substantial interest in providing the most detailed discussion yet in the UK courts of the issue of concurrency in delay claims. The decision is binding on the lower courts in Scotland and of persuasive interest for the courts elsewhere in the UK.

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