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16 October 2009 / Ian Pease
Issue: 7389 / Categories: Features , Commercial
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The edifice begins to crack

Ian Pease identifies the cracks in Chartbrook

Chartbrook Ltd v Persimmon Homes Ltd & Others [2009] UKHL 38, [2009] All ER (D) 12 (Jul) concerns the proper construction of the terms of a contract.

It represents the most important case in this area since Bank of Credit and Commerce International SA v Ali and Others [2002] 1 AC 251 which itself built upon Investors Compensation Scheme Ltd (ICS) v West Bromwich Building Society [1998] 1 All ER 98, Lord Hoffmann having given judgments in both.

Superficially Chartbrook appears to be “business as usual” and a fairly conventional endorsement of the line on contractual construction that the House of Lords had taken in those former cases. However, this may be a misconception, for the case contains some obiter remarks from three of the judges that tend to indicate that a change is in the offing.

The most important aspect of the case is the extent of the context and background that the court can legitimately take into account when construing contract terms and, in particular, whether it is ever right to have recourse

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NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
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Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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