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Reports from the courts: July 2015

Our regular round up of the court cases of most interest to construction from Andrew Croft and Simii Sivapalan of Beale & Company focus on a case where there was a dispute over whose standard terms applied; and one which shows the courts’ reluctance to intervene when guarantees are called or paid.

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State of play table 201

This table, prepared by Clyde & Co, provides a regularly amended guide to new and proposed legislation that will affect the construction industry. In addition to EU Directives and UK legislation, the table includes notes highlighting discussion papers issued by both government and non-government organisations, and commentary on the latest developments.

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Supreme Court ruling awaited

Guest editor Cecily Davis of Fieldfisher looks ahead to an appeal expected shortly against an important ruling affecting liquidated damages and asks whether the doctrine of the law should be applied against penalties in such cases.

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Legal terms explained: Liens

Liens In the broad sense a lien is the right of one person to retain possession of property of another until a claim has been met. In a construction context, a lien may give contractors and suppliers legal recourse to get paid for their work and/or any materials or supplies purchased.

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Jurisdiction demands clear expression

Our latest alternative dispute resolution series article from Rupert Coldwell of Clyde & Co examines the implications of a TCC decision for clear drafting of adjudication provisions in contracts.

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Defect or damage – a definition issue

Insurance expert John D Wright of JD Risk Associates examines the cover currently available for defects in the insurance market. The difference between the legal meanings of ‘damage’ and ‘defect’ might be greater than thought, he warns.

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Alliancing thriving post recession

In the second part of her article on alliancing Cecily Davis of Fieldfisher examines some of the legal and cultural obstacles to its successful spread in construction. The thirst for this more collaborative way of working is strongly in evidence, she argues, despite a recent rise in disputes.

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BIM promotes collaboration

Following a recent BIM Working Group held by Beale & Company, Andrew Croft and Natalie Ledger identify some of the legal issues arising from the use of BIM and explore some of the methods of managing them. Collaborative contracts look like becoming more prevalent.

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Supreme Court changes limitation

Shona Frame of CMS Cameron McKenna reports on the implications of a Supreme Court decision that changes what was the Scottish position on prescription and limitation for the past 30 years. Another key change is also coming, relating to counterpart signatures.

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On-demand bonds – pay now, argue later

Daniel Cashmore of Pinsent Masons reviews the situation with on-demand bonds following a court decision that adds significantly to existing case law, and represents a departure from the approach recently adopted by the courts.

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