Have you always considered that there is a legal difference between assignment and novation? Not according to the findings by the Court of Session in a recent Scottish case Blyth & Blyth Limited v. Carillion Construction Limited.
This was a case where the employer, THI Leisure (Fountainpark) Limited, engaged engineering consultants, Blyth & Blyth Limited, pursuant to a Deed of Appointment. Blyth & Blyth prepared the technical information for the tenders for engagement of the building contractor, Carillion Construction Limited. Under the Deed of Appointment, Blyth & Blyth were required to enter into a novation agreement with Carillion. Inaccuracies or deficiencies were contained in the pre-tender information prepared by Blyth & Blyth. Carillion relied on such information in tendering for the building contract and after such inaccuracies were discovered it incurred extra costs and sought to recover these from Blyth & Blyth. Carillion claimed that Blyth & Blyth had breached contractual
