In its recent judgment in URS Corporation Ltd v BDW Trading Ltd, the Supreme Court has provided helpful clarity on the ambit of the Building Safety Act 2022 (BSA) and associated legislation relevant to defects claims. The implications of the judgment are that (i) a party who voluntarily repairs defects will, in principle, being able to bring a claim against a party who had a duty to protect it against such losses (subject to considerations of reasonableness, causation and mitigation), (ii) the retrospective impact of the BSA (i.e. the extension of the time limit for claims under the Defective Premises Act 1972 (DPA) from 6 years to 30 years) applies not just to claims brought under the DPA but also to 'ancillary' claims which are dependent on the time limit under the DPA; (iii) developers are within the categories of people who are owed duties under the DPA (as well as them owing duties to others under the DPA); and (iv) a party may bring a claim for contribution against another party liable for the same damage even if that party claiming contribution has not yet had a claim brought against it.
UK Supreme Court confirms wide reach of the Building Safety Act 2022
Introduction
The Supreme Court has handed down its eagerly awaited judgment in URS Corporation Ltd v BDW Trading Ltd providing clarity and guidance for all involved in defects claims. This follows the Court of Appeal's earlier decision from 2023 (which we wrote about here).
Post-Grenfell, BDW conducted investigations into its historic developments and discovered design defects in two sets of multiple high-rise residential building developments. BDW carried out repairs to the defective buildings, although no claim against BDW arising out of the defects had been intimated by any third-party owner or occupier. URS was appointed by BDW to provide structural design services in connection with these buildings. The losses claimed by BDW from URS relate to the costs of executing those remedial works, together with associated costs. URS resisted on the basis that the scope of its duties did not extend to the losses claimed by BDW, and BDW was not entitled to recover those losses because at the time it carried out the repairs it no longer owned the developments and could not be held liable for them due to the expiry of an applicable time limit.
The Supreme Court dismissed all four grounds of URS's appeal., To put the Supreme Court's decision into context, the appeal related to preliminary issues concerning the scope of URS's duties and whether BDW's alleged losses were recoverable in principle and so was decided on assumed facts. The underlying dispute between the parties has not yet been finally determined – the actual facts applicable to this case and how the decisions made by the Supreme Court will apply to those facts will need to be determined at a further trial.
The four key issues decided by the Supreme Court were:
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