Facts: Abbeyfield and Newcastle operated under a Pre-Placement Agreement whereby Newcastle placed individuals in Abbeyfield care homes at rates determined under the Agreement. The Agreement expired, as a result of Abbeyfield and Newcastle being unable to agree on implementation of the price review mechanism. However, Newcastle continued to make placements. The issue was whether Newcastle was required to pay for new placements under the old rates fixed by the Agreement, before it expired, or on a quantum meruit basis.

Judgment: Norris J held that Newcastle was required to pay for new placements on a quantim meruit basis and a reasonable price would have to be paid.