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ARTICLE · 06 MAY 2024

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Legal Developments In Construction Law: April 2024

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What if construction works cause damage but reveal unknown existing defects that have to be dealt with in repairing the original damage? Is the person responsible liable for all the costs involved?...

United KingdomReal Estate and Construction
Richard Craven
Richard Craven
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1. BETTERMENT: DOES A WRONGDOER'S BILL FOR THE DAMAGE CAUSED INCLUDE FIXING UNKNOWN EXISTING DEFECTS DISCOVERED?

What if construction works cause damage but reveal unknown existing defects that have to be dealt with in repairing the original damage? Is the person responsible liable for all the costs involved?

In a case involving damage caused by party wall works, the Court of Appeal had to deal with this question and drew on previous case law on the issue of betterment. One of those decisions established the principle that, if the owner of destroyed property (reasonably) rebuilds it, they do not have to give credit for the fact that they get a new property instead of an old one. The Court noted in this latest case that the same must apply where the owner of damaged property (reasonably) repairs the damage. Any repair will involve replacing old materials with new, but in practice you cannot do anything else and the defendant is not entitled to an allowance

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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