Linklaters Business Services v McAlpine Ltd & Ors

Linklaters Business Services v McAlpine Ltd & Ors

McAlpine and How breached their respective contracts and collateral warranties by failing to provide proper insulation and vapour barriers in the riser chilled water pipework, causing excessive corrosion. Linklaters' decision to replace the pipes was reasonable and necessary, entitling it to damages based on actual replacement costs. No liability was established for basement and under-croft areas. Southern did not owe or breach a duty of care in tort covering damage to the pipework itself, and How's claims against Southern are dismissed.

Parties
Claimant: Linklaters Business Services; First Defendant: Sir Robert McAlpine Limited; Second Defendant: Sir Robert McAlpine (Holdings) Limited; Third Party: How Engineering Services Limited; Fourth Party: How Group Limited; Fifth Party: Southern Insulation (Medway) Limited
Jurisdiction
England and Wales
Judgment Date
23 November 2010
Procedural Posture
Civil / Final Judgment
Outcome
Judgment for Linklaters against McAlpine, How, and their holding companies; judgment for Southern; How's claims against Southern dismissed.
Legal Topics
Breach of Contract, Collateral Warranties, Negligence, Damages, Limitation, Duty of Care, Mitigation, Quantum, Building Defects
Construction Contract Tort Breach of Contract Collateral Warranties Negligence Damages Limitation +4 more

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Parties

Linklaters Business Services

Claimant

Sir Robert McAlpine Limited

First Defendant

Sir Robert McAlpine (Holdings) Limited

Second Defendant

How Engineering Services Limited

Third Party

How Group Limited

Fourth Party

Southern Insulation (Medway) Limited

Fifth Party

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether McAlpine and How breached contractual obligations regarding chilled water pipework insulation
  2. 2 Whether Southern owed and breached a duty of care in tort to How and Linklaters
  3. 3 Causation of corrosion and liability for damages

Ratio Decidendi

McAlpine and How breached their respective contracts and collateral warranties by failing to provide proper insulation and vapour barriers in the riser chilled water pipework, causing excessive corrosion. Linklaters' decision to replace the pipes was reasonable and necessary, entitling it to damages based on actual replacement costs. No liability was established for basement and under-croft areas. Southern did not owe or breach a duty of care in tort covering damage to the pipework itself, and How's claims against Southern are dismissed.

Court Disposition

Judgment for Linklaters against McAlpine, How, and their holding companies; judgment for Southern; How's claims against Southern dismissed.

Orders

  • McAlpine and How (and their holding companies) to pay Linklaters £2,845,435.60 in damages.
  • McAlpine companies entitled to indemnity from How companies for the same sum.