High Court judge rules contract made over WhatsApp is valid

A High Court judge has ruled that a WhatsApp exchange between a property developer and demolition contractor constituted a valid contract.

Jaevee Homes took Steve Fincham (trading as Fincham Demolition) to court over a dispute around demolition works at the former Mercy nightclub in Norwich.

Fincham said that his contract with Jaevee was based on an exchange of emails and WhatsApp messages. However, the property developer argued for a formalised written agreement for the £248,000 + VAT project.

Jaevee also challenged the validity of the payment applications submitted by Fincham, claiming that they did not comply with the Housing Grants, Construction and Regeneration Act 1996 and relevant legislation.

Fincham had previously won an adjudication against Jaevee for unpaid invoices, which Jaevee did not pay, leading to further legal action, including a statutory demand and enforcement actions.

Justice Roger ter Haar KC, a judge at the Construction and Technology Court, ruled that a message exchange on WhatsApp on 17 May 2023 constituted a contract based on the clear agreement on the project’s fee, work scope and payment terms, indicating an intention to create a binding agreement.

“In my judgment, the exchange of WhatsApp messages [between Ben James, CEO of Jaevee, and Steve Fincham] whilst informal, evidenced and constituted a concluded contract,” said Mr Justice ter Haar’s ruling.

The adjudicator had previously decided that Fincham was entitled to the outstanding sum of £125,650.38 plus interest of £19,875.93 and late payment fixed compensation of £370 (totalling £145,896.31).

The High Court ruled in favour of Fincham, subject to some modifications regarding the invoices. This meant that Jaevee was still liable to pay a substantial portion of the adjudicated sum.