Harrison & Ors v Shepherd Homes Ltd & Ors [2011] EWHC 1811 (TCC) (11 July 2011)

Harrison & Ors v Shepherd Homes Ltd & Ors [2011] EWHC 1811 (TCC) (11 July 2011)

SHL's sales contracts impose obligations to carry out design with proper skill and care and to complete works fit for habitation; these obligations are not excluded by entire agreement clauses, do not merge on conveyance, and are protected by statutory controls. Implied terms apply unless expressly and unequivocally excluded, which is not the case here.

Citation
[2011] EWHC 1811 (TCC)
Parties
Claimants: Mr Andrew Harrison and Others; First Defendant: Shepherd Homes Limited; Second Defendant: National House Building Council; Third Defendant: NHBC Building Control Services Limited
Jurisdiction
England and Wales
Judgment Date
11 July 2011
Procedural Posture
Civil / Trial Judgment
Outcome
Liability established against SHL for breach of contract and statutory obligations.
Legal Topics
Implied Terms, Entire Agreement Clauses, Defective Premises Act 1972, Unfair Terms in Consumer Contracts Regulations 1999, Unfair Contract Terms Act 1977, Merger Doctrine, Fitness for Habitation, Design and Workmanship Standards
Contract Law Construction Law Consumer Protection Implied Terms Entire Agreement Clauses Defective Premises Act 1972 Unfair Terms in Consumer Contracts Regulations 1999 Unfair Contract Terms Act 1977 +3 more

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Parties

Mr Andrew Harrison and Others

Claimants

Shepherd Homes Limited

First Defendant

National House Building Council

Second Defendant

NHBC Building Control Services Limited

Third Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Scope and extent of obligations under sales contracts
  2. 2 Implied terms regarding design and fitness for habitation
  3. 3 Effect of entire agreement clause on implied terms

Ratio Decidendi

SHL's sales contracts impose obligations to carry out design with proper skill and care and to complete works fit for habitation; these obligations are not excluded by entire agreement clauses, do not merge on conveyance, and are protected by statutory controls. Implied terms apply unless expressly and unequivocally excluded, which is not the case here.

Court Disposition

Liability established against SHL for breach of contract and statutory obligations.

Orders

  • SHL liable to lead Claimants for defective design and construction; damages to be assessed.
  • Parties to resolve quantum based on findings; further calculation required.