| Multiplex wins £6m in damages in Wembley Stadium row |
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| Monday, 29 September 2008 | |
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Multiplex has been awarded over £6m in damages and almost £2m in costs by the High Court after a row erupted with steel contractor Cleveland Bridge over the construction of Wembley Stadium.
Mr Justice Jackson ruled that Cleveland Bridge must pay £6.1m to Multiplex - renamed Brookfield Construction after it was acquired by a Canadian asset manager earlier this year - for overpayment, damages for breach of contract and interest. The judge also indicated that Cleveland Bridge has to pay 20% of Multiplex's legal costs, estimated at £9m, which could mean paying out almost another £2m. However, that was far less than the £25m Multiplex claimed it lost after Cleveland Bridge walked away from the project in August 2004. The row erupted after Multiplex claimed Cleveland Bridge breached its contract because of defective works, delays and failing to raise the stadium's arch in accordance with a heads of agreement. Cleveland Bridge countered Multiplex was in breach over financial issues and for failing to agree on a new programme for completion after design changes. Cleveland Bridge walked off the site in July 2004 and Hollandia was brought in to complete the job. The litigation began in 2004. This latest trial to decide financial penalties started in March this year. |


