Resolving Architectural Contractual Disputes: Fair Compensation for Partially Completed Work

The Supreme Court of Cyprus's ruling in the case ΜΑΡΙΟΣ ΚΥΡΙΑΚΟΥ κ.α. v. Α/ΦΟΙ Μ & Κ ΜΙΧΑΗΛ, Πολιτική Έφεση Αρ. 203/2015, 1/2/2024, highlights the intricacies of contractual agreements and the legal recourse available when disputes arise over professional services, specifically in architectural projects.

The dispute centered on an architectural service agreement for the development of plots of land.

The architects completed preliminary work, including drafting plans and securing planning permission. However, the project was abandoned by the owners, leading to a disagreement over the calculation of the architects' fees based on the project's final cost.

The Supreme Court's decision scrutinised the lower court's ruling and the principles of quantum meruit in the context of partially completed work. The judgment corrected the lower court's stance, emphasising that the architects were entitled to compensation for the partial fulfillment of their contractual obligations, albeit not for the full agreed fee, given the incomplete nature of the project.

This ruling underscores the importance of clear contractual terms and the judicial system's role in adjudicating disputes where contractual obligations are partially met. It reaffirms the principle that compensation can be awarded based on the value of the work done, even if the contract is not fully executed, reflecting a nuanced approach to justice in contractual disputes.

The Supreme Court's decision in this case offers critical guidance on handling disputes over professional fees and contractual obligations. It serves as a vital precedent for legal professionals in Cyprus, illustrating the judicial principles applied in assessing compensation for partially completed contractual services.

The content of this article is valid as of the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Klitos Platis by email at klitos@kleanthousplatis.com.