MDP loses appeal on contractor's works

A judgment of the First Hall of the Civil Court condemning Malta Dairy Products Ltd (MDP) to pay over Lm273,000 to a contractor has been confirmed by the Court of Appeal composed of Chief Justice Vincent Degaetano, Mr Justice Anton Depasquale and Mr Justice Albert J. Magri.

Curacrete Ltd had claimed, in its writ filed in 1998, that it had been engaged by MDP to carry out works consisting in the preparation and finishing of the pasteurising deck at MDP's dairy hall at Hamrun.

Curacrete had also been engaged by MDP to carry out additional works in the bottle-washer plant and in the ricotta cold store area.

However, when the works were completed MDP had failed to pay Curacrete as per the latter company's invoice which was based upon an established rate for each square metre of extra works.

The First Hall of the Civil Court had upheld Curacrete's writ and had condemned MDP to pay a total of Lm273,693 to plaintiff company together with interest.

Following an appeal filed by MDP the Court of Appeal noted in yesterday's judgment that the contention between the parties was whether the contract of works entered into was a measurement contract (as contended by Curacrete) or a lump sum contract, as alleged by MDP.

The appellate court ruled that the First Hall of the Civil Court had made a correct appreciation of the evidence produced and had rightly concluded that the agreement between the parties was for a measurement contract. MDP's appeal was therefore dismissed with costs.