Hunt & Ors v Optima (Cambridge) Ltd & Ors

Hunt & Ors v Optima (Cambridge) Ltd & Ors

Optima was liable for breach of contract and repairing covenants for failing to construct and maintain the building to required standards, including compliance with Building Regulations. S&P (but not Mr Egford personally or S&P LLP) was liable in tort for negligent misstatement and, for some claimants, in contract for breach of warranty, as the certificates were relied upon and consideration was present. Most claims were not time-barred. Damages were awarded for the reasonable cost of remedial works, diminution in value, and inconvenience, with specific performance refused and damages for common parts to be held in trust for remedial works.

Parties
Claimants: Jonathan Paul Hunt and others; First Defendant: Optima (Cambridge) Limited; Second Defendant: Strutt & Parker (a firm); Third Defendant: Stephen Egford; Fourth Defendant: Strutt & Parker LLP
Jurisdiction
England and Wales
Judgment Date
29 April 2013
Procedural Posture
Civil (construction/property) / Judgment After Trial
Outcome
Judgment for Claimants (damages awarded against Optima and S&P; claims against Mr Egford and S&P LLP dismissed)
Legal Topics
Breach of Contract, Negligent Misstatement, Repairing Covenants, Limitation of Actions, Damages, Building Regulations Compliance
Contract Law Tort Law Landlord and Tenant Law Professional Negligence Breach of Contract Negligent Misstatement Repairing Covenants Limitation of Actions +2 more

Case Brief

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Parties

Jonathan Paul Hunt and others

Claimants

Optima (Cambridge) Limited

First Defendant

Strutt & Parker (a firm)

Second Defendant

Stephen Egford

Third Defendant

Strutt & Parker LLP

Fourth Defendant

Procedural Posture

Civil (construction/property) / Judgment After Trial

Legal Issues

  1. 1 Whether Optima breached sale agreements and repairing covenants under leases by failing to construct and maintain the building to required standards.
  2. 2 Whether Strutt & Parker (S&P) and Mr Egford were liable in tort and/or contract for negligent inspection and certification of the building.
  3. 3 Whether the claims were barred by limitation.

Ratio Decidendi

Optima was liable for breach of contract and repairing covenants for failing to construct and maintain the building to required standards, including compliance with Building Regulations. S&P (but not Mr Egford personally or S&P LLP) was liable in tort for negligent misstatement and, for some claimants, in contract for breach of warranty, as the certificates were relied upon and consideration was present. Most claims were not time-barred. Damages were awarded for the reasonable cost of remedial works, diminution in value, and inconvenience, with specific performance refused and damages for common parts to be held in trust for remedial works.

Court Disposition

Judgment for Claimants (damages awarded against Optima and S&P; claims against Mr Egford and S&P LLP dismissed)

Orders

  • Damages awarded to individual claimants for defects in their flats and for inconvenience.
  • Damages for common parts defects (£225,142.51) to be paid by Optima into a trust account for remedial works, with conditions on use and reimbursement of surplus.