Permaban WIN the case over Heron Building Contractors

Great news for Ivybridge based Permaban!  On the 15^th April 2009, it was announced by the Exeter High Court of Justice that Permaban had defeated the £120,000 claim against them from Kingsbridge based Heron Building Contractors.  Permaban were awarded their £15,000 counter claim against Heron Building Contractors in full.

In 2005 Heron Building Contractors were redeveloping Kingsmarket shopping precinct in Fore Street, Kingsbridge, Devon.  Heron's Director, Mr Ian Hodge, requested Permaban lay a ground and polished concrete floor. 

Permaban had been installing this innovative sustainable flooring method since 1996.  The floor layout was changed by Mr Hodge without informing Permaban who only discovered the changes on the day they arrived on site to lay the floor.  When Mr Hodge was advised of the problems he had created which would cause greater difficulty in time and cost to install the floor and that the concrete floor would crack as a result of the changes he had made Mr Hodge instructed Permaban to get on with laying the floor as he had a programme to meet. The changes made by Mr Hodge resulted in a £16,000 floor costing Permaban £26,000 to install because of the changes.

Following a year's delay in obtaining payment from Mr Hodge for the original £16,000 and solicitor costs of £3,000 and no payment of Permaban's extra costs, Mr Hodge instructed his solicitors to commence proceedings against Permaban seeking £120,000 to replace the floor. His solicitor Mr Guy Walker of Plymouth based Nash and Co who had taken on Heron's case on a no win no fee basis which meant that if they had won they could increase their fees by up to 100%

The case finally came to court for an eight day hearing in January 2009 at Plymouth and Exeter High Court of Justice, where the final decision by Judge Griggs was made public on Wednesday 15^th April 2009 with Permaban being awarded their claim of £10,000 plus interest from 2005 for the extra work they had to undertake. Mr Hodge from Heron Builders Ltd was awarded only £5 from his claim of £120,000.00.

Judge Griggs was very critical of Mr Ian Hodge, Director of Heron Building Contractors and developer of Kingsmarket in Kingsbridge, and quoted the following in his Judgement:

"There were a number of respects in which Mr Hodge gave evidence that was unsatisfactory."

 "I regret having to make a finding that Mr Hodge had not just misremembered what had happened but was deliberately seeking to conceal from the court what he knew to be the truth in a number of respects."

"I regret having to say that Mr Hodge's approach coloured the whole way he had treated the defendants (Permaban) from an early stage. Mr Hodge was at the stage in my judgement seeking to lay the foundations of the argument that he wanted to be able to help to pursue in the litigation he anticipated would follow."

Mr Rodney Arnold Chairman of Permaban stated "we were forced to defend this spurious claim by Mr Ian Hodge of Heron Building Contractors  and incur solicitor and expert witness costs of over £250,000 . This matter should never have reached court and it shows what is happening with the justice system when someone with a totally spurious aggressively persued claim can bring the matter to court with the aid of no win no fee legal representation. The time and cost incurred by Permaban could have been better spent winning more work from abroad where Permaban exports some 75% of what it produces".

On the 2^nd June 2009 there was a further hearing before Judge Griggs at Exeter High Court of Justice.  Permaban sought and were granted an order from the Court that Heron Building Contractors pay Permaban's costs on a full indemnity basis. The Barrister for Permaban,  Mr  Nicolas Collins,  stated to the court that the reason that Permaban's costs should be paid in full on an indemnity basis was due to the Claimant's (Mr Hodge) dishonest conduct both before and during the trial was clearly such as too justify such an order.

In particular:

"The evidence given by Mr Hodge in his written statements and during the trial to support his claim was deliberately untruthful."

"Not only was his evidence untruthful, but Mr Hodge had embarked on a course of deceit which commenced during the project.  In particular, he had caused to be written correspondence which he knew to be untruthful and which he intended to (and did) reliy on in his subsequent litigation."

The Judgement amounting to 74 paragraphs, has been made available in the public interest and can be obtained by written request to Permaban Ltd at Mill Close, Lee Mill Industrial Estate, Ivybridge, Devon PL21 9GL.