Scottish Widows Services & Anor v Harmon/CRM Facades Ltd [2010] ScotCS CSOH_42 (23 March 2010)

Scottish Widows Services & Anor v Harmon/CRM Facades Ltd [2010] ScotCS CSOH_42 (23 March 2010)

Losses consisting of the cost of remedial works to rectify construction defects are recoverable under the collateral warranties by the pursuers as assignees, provided the warranties contemplate such loss and the pursuers have incurred the cost, regardless of whether the physical defect predated their interest. The repairing obligations in the lease and sublease do not negate the right to recover under the warranties.

Citation
[2010] ScotCS CSOH_42
Parties
Pursuer: Scottish Widows Services Ltd; First Defender (harmon Action): Harmon/CRM Facades Ltd (in liquidation); Second Defender (both Actions): Building Design Partnership; Third Defender (harmon Action): W. S. A. Inc; First Defender (kershaw Action): Kershaw Mechanical Services Ltd
Jurisdiction
Scotland
Judgment Date
23 March 2010
Procedural Posture
Commercial Construction Contract Dispute / Opinion Following Debate on Relevancy (pleadings)
Outcome
Pursuers' pleadings held relevant; actions allowed to proceed.
Legal Topics
Collateral Warranties, Assignment of Contractual Rights, Measure of Damages, Privity of Contract, Remedial Works Liability
Construction Law Contract Law Collateral Warranties Assignment of Contractual Rights Measure of Damages Privity of Contract Remedial Works Liability

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Parties

Scottish Widows Services Ltd

Pursuer

Harmon/CRM Facades Ltd (in liquidation)

First Defender (harmon Action)

Building Design Partnership

Second Defender (both Actions)

W. S. A. Inc

Third Defender (harmon Action)

Kershaw Mechanical Services Ltd

First Defender (kershaw Action)

Procedural Posture

Commercial Construction Contract Dispute / Opinion Following Debate on Relevancy (pleadings)

Legal Issues

  1. 1 Whether losses claimed by the pursuers are recoverable under the terms of the collateral warranties
  2. 2 Whether the pursuers have title to sue as assignees
  3. 3 Whether the repairing obligations in the lease and sublease affect recoverability of losses

Ratio Decidendi

Losses consisting of the cost of remedial works to rectify construction defects are recoverable under the collateral warranties by the pursuers as assignees, provided the warranties contemplate such loss and the pursuers have incurred the cost, regardless of whether the physical defect predated their interest. The repairing obligations in the lease and sublease do not negate the right to recover under the warranties.

Court Disposition

Pursuers' pleadings held relevant; actions allowed to proceed.

Orders

  • Actions to proceed to further procedure; no dismissal on relevancy grounds.