Co-Operative Group Ltd v Birse Developments Ltd & Ors [2014] EWHC 530 (TCC) (28 February 2014)

Co-Operative Group Ltd v Birse Developments Ltd & Ors [2014] EWHC 530 (TCC) (28 February 2014)

Birse's causes of action in tort against Jubb and Geofirma accrued, at the latest, on practical completion when Birse incurred actual liability and measurable financial detriment as a result of the sub-contractors' negligence. The limitation period began to run from that point, rendering the claims time barred under section 2 of the Limitation Act 1980. The attempt to assign the benefit of Jubb's warranty to Co-op without Jubb's consent did not create a trust in favour of Co-op, as the contractual prohibition on assignment was effective and no trust arose by operation of law.

Citation
[2014] EWHC 530 (TCC)
Parties
Claimant: Co-operative Group Limited; Defendant: Birse Developments Limited (in Liquidation); Third Party: Stuarts Industrial Flooring Limited (In Administration); Fourth Party: Jubb & Partners (a firm); Fifth Party: Geofirma Soils Engineering Limited
Jurisdiction
England and Wales
Judgment Date
28 February 2014
Procedural Posture
Technology and Construction Court Proceedings (preliminary Issues) / Judgment on Preliminary Issues
Outcome
Preliminary issues decided in favour of Jubb and Geofirma; Birse's claims in tort are time barred; no trust arose in favour of Co-op on attempted assignment without consent.
Legal Topics
Limitation of Actions, Negligence, Assignment of Warranties, Pure Economic Loss, Collateral Warranties
Construction Law Tort Law Contract Law Limitation of Actions Negligence Assignment of Warranties Pure Economic Loss Collateral Warranties

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Parties

Co-operative Group Limited

Claimant

Birse Developments Limited (in Liquidation)

Defendant

Stuarts Industrial Flooring Limited (In Administration)

Third Party

Jubb & Partners (a firm)

Fourth Party

Geofirma Soils Engineering Limited

Fifth Party

Procedural Posture

Technology and Construction Court Proceedings (preliminary Issues) / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether Birse's causes of action in tort of negligence against Jubb and Geofirma are time barred by section 2 of the Limitation Act 1980
  2. 2 Whether the attempt to assign the benefit of Jubb's warranty to Co-op without Jubb's consent gave rise to a trust in favour of Co-op

Ratio Decidendi

Birse's causes of action in tort against Jubb and Geofirma accrued, at the latest, on practical completion when Birse incurred actual liability and measurable financial detriment as a result of the sub-contractors' negligence. The limitation period began to run from that point, rendering the claims time barred under section 2 of the Limitation Act 1980. The attempt to assign the benefit of Jubb's warranty to Co-op without Jubb's consent did not create a trust in favour of Co-op, as the contractual prohibition on assignment was effective and no trust arose by operation of law.

Court Disposition

Preliminary issues decided in favour of Jubb and Geofirma; Birse's claims in tort are time barred; no trust arose in favour of Co-op on attempted assignment without consent.

Orders

  • Birse's causes of action in tort against Jubb and Geofirma are time barred under section 2 of the Limitation Act 1980.
  • The attempt to assign the benefit of Jubb's warranty to Co-op without Jubb's consent did not create a trust in favour of Co-op.