*Greenwich Millennium Village Ltd v Essex Services Group plc and others

Indemnity – Negligence. Following a flood at a recently constructed block of flats, the building owner commenced proceedings against the main contractor which led to a series of claims against the chain of sub-contractors. The judge found that the mechanical sub-sub-sub-contractor (Robson) had been liable for two defects in workmanship which had been the principal cause of the flood with the result that the Robson was liable under the indemnity clause contained in the agreement by which it had been engaged by HSE. The Court of Appeal, Civil Division, upheld that decision and found that HSE's failure to inspect the work properly, even when the breaches should have been detected upon a reasonable inspection of the work, had not shut out its claim under the indemnity. It could not have been presumed that the parties had intended to confine the indemnity clause only to workmanship breaches which had been invisible upon reasonable inspection.

Category: