Net Contribution Clauses

As yet in this jurisdiction, there is no concept of proportionate liability. A claimant is entitled to recover the full loss from any one defendant, including in circumstances where more than one person is potentially liable in respect of the claim. A net contribution clause ("NC clause") seeks to confine a party's liability to the loss which is attributable to that party only. NC clauses are most commonly discussed in the context of consultant appointments and collateral warranties on construction projects. If included in an appointment document, the NC clause purports to limit that consultant's liability to an amount that would be apportioned by the court on the basis other defendants are held liable for the same loss, or to an amount which is just and reasonable for the consultant to pay.