Decision details

OD/14/52 Settlement of Contractual Liability

Decision Maker: Officer Decision

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

Ipswich Borough Council entered into a contract with a service provider who was due to provide a service and a fee to Ipswich Borough Council in several instalments. The service was not provided and payments were not made to Ipswich Borough Council in breach of contract.

 

The options were to issue court proceedings and sue for damages, negotiate a settlement or to accept the loss. The option to issue proceedings was rejected as IBC would have had to incur expenditure and time in doing so. The court also expects parties where possible to settle their disputes before it becomes necessary to issue proceedings, and costs penalties can follow if parties refuse to settle. A settlement was accordingly agreed.

 

The background document was the contract.

 

The decision was made in consultation with the section 151 Chief Finance Officer.

Publication date: 14/01/2015

Date of decision: 07/01/2015

Accompanying Documents: