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An interesting gloss on Regalian and wasted expenses from Hart J.

The MOD wanted wireless equipment. Racal wanted to tender and needed to subcontract the antennae. They approached Easat, & after the usual humming and hawing agreed that Easat would get the subcontract if they got the contract with the MoD. But the price was left to future negotiation, & so any possible contract claim by Easat was stymied by Walford v Miles. Later, by which time Easat (with some encouragement from Racal) had incurred £100k plus R & D, Racal placed the subcontract elsewhere before successfully tendering to the MoD.

Can Easat claim their R & D? Yes, despite Regalian. Regalian only applies where the claimant knows there isn't a contract & therefore acts at its own risk. Here Easat thought (wrongly as a matter of law) that there was a valid agreement, & this made all the difference. See Easat v Racal, unrep (I think) 28.3.00.

The interesting point is that no-one seems to have mentioned the Planche v Colburn point, i.e. no benefit to Racal anyway. Or am I missing something?

AT

Andrew Tettenborn MA LLB
Bracton Professor of Law

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