13 Jan 2012, 4:32 pm
Persimmon bought a site in Hampshire from Hall Aggregates (South Coast) Ltd and Cemex UK Properties Ltd in 1999 for £29.9m. The Cherque Farm site in Lee-On-Solent had been used for sand and gravel extraction and, later, for landfill.
Some of the landfill waste gave rise to a problem with methane gas which Persimmon had to deal with as condition of building on the site.
Persimmon claimed £2m in damages because it said that its sale agreement stipulated that this work should have been carried out by the sellers of the land. The sellers said that Persimmon's conduct amounted to a waiver of their obligations under the sale agreement.
The case was appealed by both sides and Mr Justice Ramsey awarded pay £1,146,257.70 to Persimmon. Because the works were carried out by Persimmon, the judge assessed damages by reference to the notional cost of carrying out such works.
