Riva Properties Ltd & Ors v Foster + Partners Ltd [2017] EWHC 2574 (TCC) (18 October 2017)

Riva Properties Ltd & Ors v Foster + Partners Ltd [2017] EWHC 2574 (TCC) (18 October 2017)

Foster + Partners were aware of the claimants' budget and failed to design within it or adequately warn that the design could not be value engineered down to £100 million. This constituted a breach of duty. The claimants were entitled to recover damages for abortive professional fees caused by this breach, subject to the contractual cap on liability. The claim for lost profits was not established on the evidence. There was no contributory negligence or limitation bar established against the claimants.

Citation
[2017] EWHC 2574 (TCC)
Parties
Claimant: Riva Properties Limited; Claimant: Riva Bowl LLP; Claimant: Riva Bowl Limited; Claimant: Wellstone Management Limited; Defendant: Foster + Partners Limited
Jurisdiction
England and Wales
Judgment Date
18 October 2017
Procedural Posture
Professional Negligence Claim (architectural Services) / High Court Judgment After Full Trial
Outcome
Claim allowed in part
Legal Topics
Architects' Duties, Duty of Care, Breach of Contract, Causation, Damages, Limitation, Contributory Negligence
Professional Negligence Contract Law Tort Law Construction Law Architects' Duties Duty of Care Breach of Contract Causation +3 more

Case Brief

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Parties

Riva Properties Limited

Claimant

Riva Bowl LLP

Claimant

Riva Bowl Limited

Claimant

Wellstone Management Limited

Claimant

Foster + Partners Limited

Defendant

Procedural Posture

Professional Negligence Claim (architectural Services) / High Court Judgment After Full Trial

Legal Issues

  1. 1 Whether Foster + Partners owed and breached a duty of care to the claimants to design within an agreed budget
  2. 2 Whether Foster + Partners failed to advise on costs and value engineering
  3. 3 Whether losses claimed were caused by any breach

Ratio Decidendi

Foster + Partners were aware of the claimants' budget and failed to design within it or adequately warn that the design could not be value engineered down to £100 million. This constituted a breach of duty. The claimants were entitled to recover damages for abortive professional fees caused by this breach, subject to the contractual cap on liability. The claim for lost profits was not established on the evidence. There was no contributory negligence or limitation bar established against the claimants.

Court Disposition

Claim allowed in part

Orders

  • Foster + Partners to pay damages to the claimants for abortive professional fees, subject to the contractual liability cap of £10 million.
  • Claim for lost profits dismissed.