ADJUDICATION
UK Supreme Court decides Collateral Warranties are not
Construction Contracts
In a pragmatic and concise judgment, the UK Supreme Court ruled
unanimously that the collateral warranty in Abbey Healthcare (Mill
Hill) Ltd (Respondent) v Augusta 2008 LLP (formerly Simply
Construct (UK) LLP) is not a construction contract for the purposes
of the Housing Grants (Construction & Regeneration) Act 1996
(such that a dispute arising from it could be referred for
statutory adjudication). Further, it found that most collateral
warranties, as commonly drafted, will not be considered to be
construction contracts.
The decision is of interest to practitioners in Ireland, where
it will be persuasive authority. In Ireland, the definition of
“construction contract” in the Construction Contracts
Act 2013 is substantially the same as the definition in the UK Act.
Our full briefing is available here.
