Greenwich Millennium Village Ltd v Essex Services Group Plc & Ors [2014] EWCA Civ 960 (11 July 2014)

Greenwich Millennium Village Ltd v Essex Services Group Plc & Ors [2014] EWCA Civ 960 (11 July 2014)

The indemnity clause applies to workmanship breaches by Robson even if HSE failed to detect them; mere inspection failures by HSE do not defeat the operation of the clause. Alternatively, HSE is entitled to recover an equivalent sum as damages for breach of contract. Robson's workmanship errors were the principal cause of the Core 2 flood and liability passes down the contractual chain.

Citation
[2014] EWCA Civ 960
Parties
Claimant: Greenwich Millennium Village Limited; First Defendant: Essex Services Group PLC; Second Defendant/fifth Party: Hoare Lea; Respondent/third Party: HS Environmental Services Limited; Appellant/sixth Party: DG Robson Mechanical Services Limited
Jurisdiction
England and Wales
Judgment Date
11 July 2014
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Indemnity Clauses, Breach of Contract, Negligence, Apportionment of Liability, Interpretation of Contractual Terms
Construction Law Contract Law Tort Law Indemnity Clauses Breach of Contract Negligence Apportionment of Liability Interpretation of Contractual Terms

Case Brief

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Parties

Greenwich Millennium Village Limited

Claimant

Essex Services Group PLC

First Defendant

Hoare Lea

Second Defendant/fifth Party

HS Environmental Services Limited

Respondent/third Party

DG Robson Mechanical Services Limited

Appellant/sixth Party

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the indemnity clause permits recovery where the indemnitee is at fault
  2. 2 Whether Robson was responsible for the closed isolation valve (IV)
  3. 3 Whether Robson's installation of the non-return valve (NRV) was a breach of contract

Ratio Decidendi

The indemnity clause applies to workmanship breaches by Robson even if HSE failed to detect them; mere inspection failures by HSE do not defeat the operation of the clause. Alternatively, HSE is entitled to recover an equivalent sum as damages for breach of contract. Robson's workmanship errors were the principal cause of the Core 2 flood and liability passes down the contractual chain.

Court Disposition

Appeal dismissed

Orders

  • Robson's appeal is dismissed
  • HSE entitled to recover against Robson under indemnity clause