TFW Printers Ltd v Interserve Project Services Ltd [2006] EWCA Civ 875 (27 June 2006)

TFW Printers Ltd v Interserve Project Services Ltd [2006] EWCA Civ 875 (27 June 2006)

The obligation to insure under clause 6.3B of the JCT Minor Works Contract ceases upon practical completion because the contract language, structure, and commercial context indicate that insurance of the Works and unfixed materials is only required up to practical completion, after which the Employer alone bears the risk as building owner in possession. The contract does not provide machinery for insurance or variations after practical completion, and there is no rational basis for the insurance obligation to extend beyond that point.

Citation
[2006] EWCA Civ 875
Parties
Appellant: TFW Printers Ltd; Respondent: Interserve Project Services Ltd
Jurisdiction
England and Wales
Judgment Date
27 June 2006
Procedural Posture
Civil Appeal / Appeal From Central London County Court, Preliminary Issues Tried
Outcome
Appeal allowed
Legal Topics
Interpretation of Standard Form Contracts, Insurance Obligations in Building Contracts, Defects Liability Period, JCT Minor Works Contract
Construction Law Contract Law Interpretation of Standard Form Contracts Insurance Obligations in Building Contracts Defects Liability Period JCT Minor Works Contract

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Parties

TFW Printers Ltd

Appellant

Interserve Project Services Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Central London County Court, Preliminary Issues Tried

Legal Issues

  1. 1 Whether the Employer's obligation to insure under clause 6.3B of the JCT Minor Works Contract continues after practical completion until the end of the defects liability period
  2. 2 If the insurance obligation continues, whether clause 6.3B bars a claim by the Employer against the Contractor for damages for breach of contract and/or negligence

Ratio Decidendi

The obligation to insure under clause 6.3B of the JCT Minor Works Contract ceases upon practical completion because the contract language, structure, and commercial context indicate that insurance of the Works and unfixed materials is only required up to practical completion, after which the Employer alone bears the risk as building owner in possession. The contract does not provide machinery for insurance or variations after practical completion, and there is no rational basis for the insurance obligation to extend beyond that point.

Court Disposition

Appeal allowed

Orders

  • Employer's obligation to insure under clause 6.3B ceases upon practical completion
  • Employer's claim for damages is not barred by clause 6.3B