Collateral Warranties In Construction Transactions Webinar

RDJ Partners Finola McCarthy and Alison Bearpark, alongside Solicitor Georgina Wallace were joined by guest speaker James Burke BL to review the practical issues and risks with collateral agreements and relevant case law surrounding contractual interpretation and limitation clauses.

Below are some key takeaways from that discussion:

Collateral Warranties and their effect

• Creates a direct contractual link between the parties.
• Without a warranty, third party's recourse is solely in tort, where recovery of damages for pure economic loss in Ireland remains uncertain. In Ireland, the decision of Keane CJ in Glencar Exploration plc v Mayo County Council¹ which addressed in obiter comments that the Plaintiff was not entitled to recover for pure economic loss in circumstances where a contractual relationship did not exist between the parties (this case did not relate to collateral warranties).