Net contribution clause under scrutiny
If more than one party is liable for the same damage, the common law assumes that they are jointly and severally liable for any loss. This means that any one of those parties can be sued for the whole of the loss.
The Civil Liability (Contribution) Act 1978 offers a right of recourse for parties by allowing a fair and equitable contribution to be recovered from the other party, in proportion to the amount of damage that party is actually liable for. In the construction industry, the net contribution clause is the weapon of choice, limiting the professional’s liability to a ‘fair share’ of losses suffered. However, a recent case demonstrates that although historically a vital risk management tool, these clauses are coming under the spotlight…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Ofgem and DECC have jointly published an action plan of measures to encourage the growth of independent energy suppliers.
The Finance Act 2014 will change the economics of using tax avoidance schemes by requiring payment of disputed tax upfront in cases involving numerous marketed tax management schemes,
Analysis from The Lawyer
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.
New EU rules and lawyers’ increased comfort with digital formats are sparking a sea-change in the way law firms manage their documents