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ARTICLE · 04 APRIL 2022

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Legal Developments In Construction Law: March 2022

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In a claim by home owners against their builder in respect of defective and incomplete work, the most significant issue was whether it was necessary to demolish the extension it had built...

United StatesReal Estate and Construction
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1. A defective extension is demolished and rebuilt – but what about mitigation of loss?

In a claim by home owners against their builder in respect of defective and incomplete work, the most significant issue was whether it was necessary to demolish the extension it had built and reconstruct the foundations and steelwork. How did the court approach the issue?

The court said that, even if the defects did not (contrary to its view) compel or necessitate the demolition or rebuild, the relevant question, as a matter of law, was whether the claimants, in relying on their expert's opinion, had failed to act reasonably/mitigate their loss. Both parties accepted that the relevant principle of law was encapsulated in the case of The Board of Governors of the Hospitals for Sick Children v McLaughlin & Harvey plc, where the judge had said that the plaintiff who carries out repair or reinstatement of their property must act reasonably.

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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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