Additional compensation for failure to supply

suchgreatheights · 9 February 2018 at 5:23PM

Question: does anyone have experience of a similar situation, and can offer advice as to likely success and/or if the effort was worthwhile.

Situation: I am building an extension to my home including a new set of patio doors. I sourced the doors through a separate company (not through the builder). The door company failed to supply the doors on the promised installation date nor for a further month, at which point I cancelled the order and my deposit was refunded. I went to a different company who supplied the same doors within 1 month.

The delay has cost me: 2 months additional interest on building loan, 2 months delay re-mortgaging (stuck on SVR, house unfinished), I paid builder extra to work weekends in order to meet the installation date for the doors, the house remained unsecured and uninsulated (in winter), to say nothing of the fact I had to make do without a kitchen or utility room for another 2 months and the hassle etc of sorting everything out.

I am not by nature litigious and part of me thinks 'just move on', but I feel I have a good case! My first step would be to simply present the costs, request compensation and take it from there.

Any similar experiences would be interesting to hear.

Gavin83 · 9 February 2018 at 9:22PM

How much was the interest on the building loan?

Thats the only listed issue I feel you may potentially have a case on as the others you either didnt lose out financially on or really had nothing to do with the doors.

Also I feel at best your claim is for 1 month. Your decision to cancel and then having to wait a further month for another company to produce was your decision. Im not saying it was the wrong one but they wont be liable for this further delay as once you cancelled the contract its no longer their responsibility.

suchgreatheights · 9 February 2018 at 10:57PM

Hi Gavin83 - thanks for the reply!

I think the other issues are relevant because the doors were the only thing which prevented us from completing on schedule. I see what you!!!8217;re saying about it being my decision to cancel but it was with good reason because having failed to deliver on the day they showed no ability to fulfil the order or offer a viable alternative, whereas another company was able to do so easily (within 4 weeks, as opposed to the 10 weeks we finally gave the first company).

Surely the compensation should be based on the additional costs I incurred between the date of the failure to supply and the date I was able to remedy it (at my own cost and time)? I.e so that I am in no worse a position than I would have been had the original order been fulfilled?

lincroft1710 · 10 February 2018 at 7:17PM

As it was your decision to cancel the order, then at that date you have no contract with the door supplier. Therefore anything that happens after that date is not their responsibility.

I agree with Gavin, I think the most you could claim for is 1 month's interest on the loan. It's worth a request, followed by a Letter Before Action, but may not be worth an actual MCOL claim.

unholyangel · 10 February 2018 at 7:30PM

suchgreatheights wrote: »

Hi Gavin83 - thanks for the reply!

I think the other issues are relevant because the doors were the only thing which prevented us from completing on schedule. I see what you!!!8217;re saying about it being my decision to cancel but it was with good reason because having failed to deliver on the day they showed no ability to fulfil the order or offer a viable alternative, whereas another company was able to do so easily (within 4 weeks, as opposed to the 10 weeks we finally gave the first company).

Surely the compensation should be based on the additional costs I incurred between the date of the failure to supply and the date I was able to remedy it (at my own cost and time)? I.e so that I am in no worse a position than I would have been had the original order been fulfilled?

Did you make them aware (before you entered the contract with them) that you were funding it via a building loan and had a completion date of x? Or did you just tell them you needed the doors for x date?

suchgreatheights · 10 February 2018 at 11:38PM

Thanks all.

I!!!8217;m not sure why it makes a difference if I informed them of my source of funding or not? It!!!8217;s none of their business. They gave me an installation date. We geared the build program around this date. They then failed to supply. I allowed them another month to fulfil their obligations which they failed to do. All the costs listed are a direct consequence of their failure to supply as contracted to do so. Probably worth mentioning that the contract specifically states that in the event of me cancelling I may be due additional compensation.

unholyangel · 10 February 2018 at 11:48PM

suchgreatheights wrote: »

Thanks all.

I!!!8217;m not sure why it makes a difference if I informed them of my source of funding or not? It!!!8217;s none of their business. They gave me an installation date. We geared the build program around this date. They then failed to supply. I allowed them another month to fulfil their obligations which they failed to do. All the costs listed are a direct consequence of their failure to supply as contracted to do so. Probably worth mentioning that the contract specifically states that in the event of me cancelling I may be due additional compensation.

Because damages are only recoverable under 2 limbs.
1) losses that would arise naturally - in other words if it would be obvious to the world at large that such a loss would occur from the breach of contract
2) losses that would have been in the contemplation (or should have been in their contemplation) at the time the contract was entered into - in other words losses that wouldn't be obvious to the world at large but that arise from special circumstances of which the parties were aware of.

imo the losses you've mentioned would not be obvious to the world at large that they would occur from such a breach therefore you'd be reliant on them being recoverable under the 2nd limb - which requires them to be aware of it when they entered the contract. Any other losses are deemed too remote.

Gavin83 · 11 February 2018 at 12:17AM

Well lets go through each of your points:

2 months additional interest on building loan - already covered that, partial claim IMO.

2 months delay re-mortgaging - I dont see what financial loss youve suffered here but happy to be corrected.

I paid builder extra to work weekends - Theyll argue that if you were short on time you should have had the builder start earlier and theyve probably got a case. It isnt their fault you had to employ the builder at weekends.

the house remained unsecured and uninsulated - Cant see a financial loss here either, except maybe increased heating bills, but this is hard to quantify and frankly a little petty for the small sums involved.

to say nothing of the fact I had to make do without a kitchen or utility room for another 2 months and the hassle etc of sorting everything out. - again no financial loss.

suchgreatheights wrote: »

Thanks all.
Probably worth mentioning that the contract specifically states that in the event of me cancelling I may be due additional compensation.

If you are contracted to receive compensation thats a different matter but its the first time youve mentioned this. Have you raised this with them?

Saying that its a weird contract term to include, what specifically does it say?

suchgreatheights · 11 February 2018 at 1:11AM

Thanks unholyangel, that!!!8217;s helpful.

Thanks again to all who replied, still keen to hear of any similar experiences but otherwise I think I!!!8217;ll leave it there and check in with citizens advice rather than get stuck into a debate!

Cheers.

lincroft1710 · 11 February 2018 at 6:48PM

suchgreatheights wrote: »

I'll leave it there and check in with citizens advice rather than get stuck into a debate!

Be aware that CAB won't necessarily have legal experts who can help you. I speak from experience as in the past they have phoned me for advice.

forgotmyname · 12 February 2018 at 2:46AM

CAB will advise you to get legal advice. What about your home insurance?

What does your contract say about the fitting/delivery date?

Left insecure, it would take a builder 1/2 an hour to secure the doorway, even if it was just some ply and a cheap frame.

Did you get the contract quote backwards? If YOU cancel you may still owe them money?

Cannot see a company having a term where the customer cancels they can get back more than they paid?

Additional compensation for failure to supply

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