Scottish & Newcastle PLC v. G.D. Construction (St Albans) Ltd [2001] EWHC Technology 444 (29th March, 2001)

Scottish & Newcastle PLC v. G.D. Construction (St Albans) Ltd [2001] EWHC Technology 444 (29th March, 2001)

The contract does not exclude the contractor's liability for damage to existing structures caused by its negligence, nor does it require insurance to cover business interruption losses. The exclusion in clause 6.1.2 applies only to the indemnity provided by that clause and not to liability at common law or under other contract provisions. The insurance obligation does not extend to business interruption.

Citation
[2001] EWHC Technology 444
Parties
Claimant: Scottish & Newcastle Plc; Defendant: G D Construction (St. Albans) Ltd.
Jurisdiction
England and Wales
Procedural Posture
Civil / Preliminary Issue Determination
Outcome
For the claimant on the preliminary issue
Legal Topics
Contractual Interpretation, Exclusion of Liability, Joint Insurance Policies, Negligence, Business Interruption, Specified Perils
Construction Law Contract Law Insurance Law Contractual Interpretation Exclusion of Liability Joint Insurance Policies Negligence Business Interruption +1 more

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Parties

Scottish & Newcastle Plc

Claimant

G D Construction (St. Albans) Ltd.

Defendant

Procedural Posture

Civil / Preliminary Issue Determination

Legal Issues

  1. 1 Whether the contractor's liability for damage to existing structures caused by fire due to its negligence is excluded by the contract
  2. 2 Whether the employer's obligation to insure under the contract covers business interruption losses
  3. 3 Whether the risk of damage to existing structures by fire caused by contractor negligence is covered by the joint names insurance policy

Ratio Decidendi

The contract does not exclude the contractor's liability for damage to existing structures caused by its negligence, nor does it require insurance to cover business interruption losses. The exclusion in clause 6.1.2 applies only to the indemnity provided by that clause and not to liability at common law or under other contract provisions. The insurance obligation does not extend to business interruption.

Court Disposition

For the claimant on the preliminary issue

Orders

  • The defendant is liable to the claimant for damage to the existing structure and for business interruption losses, subject to the point reserved by the amendment to the Defence.