Construction & engineering briefing: November 2012
As one would expect, during the recession, the number of construction insolvencies has increased steadily. Whilst a lot has been written about contractor insolvency, commentators have said relatively little on developer insolvency. What are the issues concerning developer insolvency - particularly in circumstances where construction work remains incomplete?
In the wake of a developer’s insolvency, the biggest issue a main contractor faces is whether to determine his employment under the building contract.
Our clients are often surprised to learn that, under the common (general) law, insolvency (even liquidation) is not a fundamental breach of contract for which a party may terminate. Insolvency does not even constitute a breach of contract which entitles the other party to claim damages. That said, most industry form agreements (such as the JCT building contracts) have been drafted to give the contractor an express right to determine his employment upon the occurrence of an insolvency event of a type set out in the building contract.
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
Corporate liability: the Italian Supreme Court extends the scope of application of Legislative Decree No. 231/2001
The Italian Supreme Court has reconsidered the possibility of applying Legislative Decree No. 231/2001 to the so-called target offences of a criminal organisation.
In autumn 2011, Thailand suffered severe floods. Among the properties damaged were shops and distribution centres owed by a subsidiary of Tesco.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions