The Court of Appeal held that the university's claim to withhold past accrued progress payments upon termination of the building contract was not reasonably arguable, allowing the contractor's appeal against the refusal of summary judgment and striking out the statement of claim. The Court construed clause 44.4(a) of the contract as referring to the cost of completing the remaining work under the contract, not the entire project, and held that the 'no further payment' provision in clause 44.4 did not operate to withhold progress payments that had already accrued as debts prior to termination. The decision also addressed whether the contract ousted the principal's right to set off unliquidated damages against accrued progress payments, with the Court finding the plaintiff had no real prospect of succeeding on its claim.
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