Scottish and Newcastle Ltd (S&N) has won the preliminary stage of a High Court damages claim against a construction company whose subcontractor accidentally set fire to the roof of one of its pubs.
S&N engaged GD Construction (St Albans) Ltd (GD) in 1996 to carry out works to The Thatchers, Fairwater Drive, Woodley, Reading, to create a family inn. The contract, which included mechanical and electrical work, was on standard IFC 84 terms.
In November a roofer, subcontracted by GD, accidentally ignited a section of straw thatch on the roof while using a blowtorch to heat roofing felt. The fire spread rapidly through the thatch and down into the building itself causing extensive damage to the entire premises.
When S&N sued for negligence, GD argued that the terms of the contract excluded any such liability as they provided that S&N would take out insurance to cover fire risks.
However, Judge Richard Seymour QC ruled in the Technology and Construction Court that the fire insurance provision did not relate to liability arising from negligence.
He held that if S&Ns case in negligence were made out, it would be entitled to recover damages from GD to compensate for the damage to the existing structure of the pub and for business interruption caused by the fire.
Scottish & Newcastle plc v GD Construction (St Albans) Ltd Technology & Construction Court (Judge Richard Seymour QC) 29 March 2001
Marcus Taverner QC (instructed by Vizards Staples & Bannisters) appeared for the claimant; Graham Eklund (instructed by Hill Dickinson) appeared for the defendant.
PLS News 30/3/01
