John F Hunt Demolition Ltd v ASME Engineering Ltd

John F Hunt Demolition Ltd v ASME Engineering Ltd

The insurance and indemnity provisions in the main contract and sub-contract excluded Hunt's liability to Whitehall for fire damage to the existing structures, and thus Hunt owed no duty of care to Whitehall in respect of such damage. Hunt's maximum liability was limited to Build's own losses (£43,512.88). The reasonableness of the settlement sum paid by Hunt is a question of fact, but as a matter of principle, a party need not prove strict liability to recover a reasonable settlement from a third party; however, if the settlement is unreasonable, it is not recoverable.

Parties
Claimant: John F Hunt Demolition Limited; Defendant: ASME Engineering Limited
Jurisdiction
England and Wales
Judgment Date
27 June 2007
Procedural Posture
Civil / Preliminary Issues Judgment
Outcome
Preliminary issues determined; Hunt's liability limited to Build's losses; reasonableness of settlement to be determined at trial.
Legal Topics
Insurance Provisions in Construction Contracts, Duties of Care at Common Law, Reasonableness of Settlements, Measure of Damages, Indemnity and Subrogation
Construction Law Contract Law Tort Law Insurance Provisions in Construction Contracts Duties of Care at Common Law Reasonableness of Settlements Measure of Damages Indemnity and Subrogation

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Parties

John F Hunt Demolition Limited

Claimant

ASME Engineering Limited

Defendant

Procedural Posture

Civil / Preliminary Issues Judgment

Legal Issues

  1. 1 Whether the insurance and indemnity provisions in the JCT contracts exclude liability of the main contractor and sub-contractor for fire damage to existing structures
  2. 2 Whether the sub-contractor (Hunt) owed a duty of care at common law to the employer (Whitehall) for fire damage to existing structures
  3. 3 Whether the settlement sum paid by Hunt to Kier companies was reasonable and recoverable from ASME

Ratio Decidendi

The insurance and indemnity provisions in the main contract and sub-contract excluded Hunt's liability to Whitehall for fire damage to the existing structures, and thus Hunt owed no duty of care to Whitehall in respect of such damage. Hunt's maximum liability was limited to Build's own losses (£43,512.88). The reasonableness of the settlement sum paid by Hunt is a question of fact, but as a matter of principle, a party need not prove strict liability to recover a reasonable settlement from a third party; however, if the settlement is unreasonable, it is not recoverable.

Court Disposition

Preliminary issues determined; Hunt's liability limited to Build's losses; reasonableness of settlement to be determined at trial.