SSE General LTD v Hochtief Solutions AG & Anor [2015] ScotCS CSOH_92 (14 July 2015)

SSE General LTD v Hochtief Solutions AG & Anor [2015] ScotCS CSOH_92 (14 July 2015)

The NEC contract, by its express terms (notably clause 83.1), preserves liability between parties and does not allow the joint names insurance provision to displace contractual claims. There is no implied term barring such claims, and the contract must be construed according to its wording and context.

Citation
[2015] ScotCS CSOH_92
Parties
Pursuer: SSE Generation Ltd; First Defender: Hochtief Solutions AG; Second Defender: Hochtief (UK) Constructions Ltd
Jurisdiction
Scotland
Judgment Date
14 July 2015
Procedural Posture
Commercial Construction Contract Dispute / Preliminary Hearing on Insurance and Liability
Outcome
SSE is not barred from bringing any part of the present action; case to proceed to proof.
Legal Topics
Joint Names Insurance, Contractual Liability, Subrogation, NEC Contract Interpretation
Construction Law Contract Law Insurance Law Joint Names Insurance Contractual Liability Subrogation NEC Contract Interpretation

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Parties

SSE Generation Ltd

Pursuer

Hochtief Solutions AG

First Defender

Hochtief (UK) Constructions Ltd

Second Defender

Procedural Posture

Commercial Construction Contract Dispute / Preliminary Hearing on Insurance and Liability

Legal Issues

  1. 1 Does provision for joint names insurance under NEC contract bar contractual claims between parties?
  2. 2 Is liability displaced by insurance policy?
  3. 3 Proper construction of NEC contract clauses 83.1 and 84

Ratio Decidendi

The NEC contract, by its express terms (notably clause 83.1), preserves liability between parties and does not allow the joint names insurance provision to displace contractual claims. There is no implied term barring such claims, and the contract must be construed according to its wording and context.

Court Disposition

SSE is not barred from bringing any part of the present action; case to proceed to proof.

Orders

  • By order hearing to consider further procedure in light of opinion.