Employers' implied obligation to obtain planning
permissions
Jean-Francois Clin v Walter Lilly & Co Ltd [2018] EWCA Civ
490
In this case, an employer learnt the hard way the importance
of ensuring that construction contracts are not silent on
fundamental issues such as who bears the responsibility of
obtaining planning permissions. The Court of Appeal implied a term
to the employer's detriment which required it to use all
"due diligence" to procure the relevant planning
permissions. The Court also provided guidance as to the scope of
this obligation.
Mr Clin engaged Walter Lilly under a JCT 2005 Standard Building
Contract with Quantities, incorporating Revision 2 of 2009, with
bespoke amendments (Contract), to carry out
demolition, refurbishment and reconstruction works to buildings in
a conservation area. Subsequently, the local planning authority
(LPA) specified that conservation area consent was
required. Importantly, the Contract was silent on who