Options for recovering from insolvent companies.

In a decision of interest to construction industry participants, the English Technology and Construction Court confirmed that, in some circumstances, the directors of an insolvent company may be liable in tort for the failings of that company. It is not uncommon that, after performing works, a contractor finds out that the employer is insolvent. This […]

No liability under the Defective Premises Act

The Court of Appeal has overturned a judge’s decision that the conversion works on a house were so extensive as to change its identity and so make the project manager liable to the purchasers under the Defective Premises Act 1972. The claimants bought a house from a Mr. Green in November 2007. It had a […]

No Greater Liability and Equal Rights of Defence clauses

A ‘No Greater Liability’ clause is a clause inserted in a collateral warranty which links the liability of a builder or professional under a collateral warranty to their liability under the original contract or professional appointment. Its intention is to replicate  any caps on the amount of money which can be recovered and/or set stricter time […]

‘No Amendment’ clauses sunk by emails

“No amendment” clauses in construction contracts 21.01.2016  A Commercial Court decision published earlier this month has considered the enforceability of so called “no amendment” clauses, requiring amendments to a contract to be made in writing and signed by the parties. Such clauses are widely used in construction contracts and are found in some standard forms […]

New Claims

CHOP, CHOP Mr Justice Jackson must wake up in a cold sweat thinking about Multiplex and Cleveland Bridge, because every time he thinks the hydra of litigation has been slain, another two heads pop up. “The Hydra slaughter began this month. The judge is determined to get it all to a done deed. So was […]

Net contribution clauses upheld

In a recent case, a housing association sued the architect, contractor, quantity surveyor and engineer for negligence and breach of contract. Two apartment blocks suffered from water ingress. In the event, only the case against the architects was pursued. The architects relied upon a Net Contribution Clause, NCC, in their contract, which, if effective, would […]

Mitigation of loss must relate to the breach.

In its judgment in Globalia Business Travel S.A.U. (formerly TravelPlan S.A.U) of Spain (Respondent) v Fulton Shipping Inc of Panama (Appellant) [2017] UKSC 43, the Supreme Court considered when benefits obtained by a wronged party as a result of a breach of contract will be taken into account to reduce the damages payable by the […]

Mediation and costs sanctions.

With recent stark increases in court fees, new guidance from the TCC on proportionality and another case on unreasonable refusal to participate in ADR, is it time for parties to revisit the question of why they should mediate? Rise in court fees Since 9 March 2015, court fees – the fee paid when a claim is […]

Liquidated Damages Principles

One reoccurring question we at Silver Shemmings Ash LLP are posed by our clients is whether the liquidated damages stipulated in the contract is enforceable when the employing party has incurred little or no loss as result of any delay in completion A penalty clause is where the sums of money inserted into a contract […]

Lump Sum Contracts

YOU BOUGHT IT, YOU PAY FOR IT Question: When does a main contractor have to pay a subcontractor for work that it hasn’t done? Answer: When it agreed a fixed-price lump sum contract based on issued drawings… “Judges are handicapped, disabled, fettered. The judge is chained, locked fast, to a sort of wobbly jelly sitting […]

Letters Of Intent 2

PRACTICAL COMPLETION AND THEY STILL HAVEN’T AGREED THE CONTRACT! The dangers of contractor and subcontractor co-habiting out of wedlock were highlighted when Hayden Young went to work for Laing O’Rourke on Coventry City’s Ricoh arena. “Living and working together on site? Dear me, yes. Hammering and screwing? Dear me, yes. Come the date of the […]

Letters Of Intent 1

PRACTICAL COMPLETION AND THEY STILL HAVEN’T AGREED THE CONTRACT! The dangers of contractor and subcontractor co-habiting out of wedlock were highlighted when Hayden Young went to work for Laing O’Rourke on Coventry City’s Ricoh arena. “Living and working together on site? Dear me, yes. Hammering and screwing? Dear me, yes. Come the date of the […]