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ARTICLE · 30 JANUARY 2025

Legal Developments In Construction Law: January 2025

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Under section 130 of the Building Safety Act the court can make a Building Liability Order against a company that was not responsible for defective construction...

United KingdomReal Estate and Construction
Richard Craven
Richard Craven
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1. Leaseholders move closer to Building Liability Order against SPV parent company

Under section 130 of the Building Safety Act the court can make a Building Liability Order against a company that was not responsible for defective construction, but which was 'associated' with the company that was responsible. Two companies are 'associated' if one controls the other or a third party corporate body controls both of them. The court has to consider it 'just and equitable' to make such an order and there has to be a 'relevant liability', which is liability under the Defective Premises Act 1972, S38 of the Building Act 1984 (not yet in force) or as a result of a 'building safety risk' from fire spread or structural failure. In this way such an order can 'pierce the corporate veil'.

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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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