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Davies v Barnes Webster & Sons Ltd

June 29, 2011

CHANCERY DIVISION

United Kingdom

CORAM

  • MR JUSTICE MANN

Areas of Law

  • Contract Law
  • Civil Procedure

AI Generated Summary

On appeal from District Judge Crispin’s refusal to set aside a statutory demand, Mr Justice Mann addressed who is personally liable for certified variation sums under a JCT 2007 building contract between Barnes Webster & Sons Limited and Romford and Gidea Park Rugby Football Club. The treasurer, Mr John Smith, signed the contract naming the club as employer; the President and trustee, Mr David G. E. Davies, did not sign but was served with a statutory demand for about £148,000. Applying agency principles and authorities on unincorporated associations, including Bradley Egg Farm v Clifford and Halsbury’s, the court inferred that the club’s management committee authorised Smith and is the body liable on the club’s engagements. As an ex officio committee member, Davies is personally liable (with others). The appeal was dismissed; the statutory demand stands, though the court extended the time before any bankruptcy petition to three months and lifted the costs stay.