Construction: a successful claim against a consultant for reduction in land value
The old adage that the value of investments can go down as well as up still rings true and consultants should be aware that they could find themselves liable for a diminution of market value in a property when facing a breach of contract claim as a result of the Court of Appeal’s decision in John Grimes Partnership Ltd v Gubbins (2013) EWCA Civ 37.
Consultancies in the construction industry have been given a tough time of it in court recently. This decision follows hot on the heels of the decision in The Trustees of Ampleforth Abbey Trust v Turner & Townsend Project Management Ltd (2012) EWHC 2137 (TCC), which placed liability on the consultant for a failure to engage a contractor on a formal building contract after allowing him to proceed on a letter of intent and also dealt with T&T’s attempt to cap its liability under their appointment, also the subject of a recent Stephenson Harwood alert.
John Grimes Partnership was engaged by Mr Gubbins to design a road and to obtain approval for it under section 38 of the Highways Act 1980 with the intention that it would subsequently be adopted and maintained by the local authority…
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