Can-Cara Development Ltd v Magil Construction Ja. Ltd

IN THE SUPREME COURT OF JLTDICATUR OF JAMAICA

CLAIM NO. HCV 24 1612003

BETWEEN CAN-CARA DEVELOPMENT LTD CLAIMANT

AND MAGIL CONSTRUCTION JAMAICA LTD DEFEIVDANT

John Vassell instructed by DunnCox for the defendant.

Dr. Barnett and Philip Malcolm for the claimant.

Heard: 23rd February and loth ~a~ 2004 and 18Ih March 2@5

Campbell J.

Background:

Can-Cara Development Ltd. (Can-Cara) entered into a Joint Venture Agreement

with the Ministry of Housing, to build approximately six hundred houses and provide

forty-three service lots, together with all necessary infrastructural works on

approximately ninety-nine acres of land at White Water, St. Catherine. Can-Cara was

also obliged to ensure the grant of all approvals required by government departments and

agencies and to cause all surveys to be carried out, obtain all planning approvals and

prepare all buildings plans for approval by the St. Catherine Parish Council. This

agreement was dated May 24, 1996.

On September 24, 1999, Can-Cara and Magil Construction Jamaica Ltd. (Magil)

entered into a Co-Development Agreement, in which Magil would substantially perform

the obligations of Can-Cara under the Joint-Venture Agreement, i.e., the construction of

the 600 houses and infrastructural works. In addition, Magil would be solely responsible

for all arrangements for financing for the development and would be solely liable to