RG Carter Building Ltd v Kier Business Services Ltd [2018] EWHC 729 (TCC)

In 2001/2, the Claimant, R.G. Carter Building Limited, built a new science block at Boston Grammar School. Unfortunately, the science block, which was designed by the Defendant, Kier Building Services Limited, suffered problems with the ingress of water into the building. Consequently, the client, Lincolnshire County Council, brought arbitration proceedings against Carter. The arbitration was settled in 2015 upon terms that Carter would carry out remedial works at its own cost. On 20 September 2017, Carter issued proceedings against Kier seeking an indemnity or a contribution of £205,908.60 in respect of the cost of the settlement.

The judgment concerns the trial of a preliminary issue as to whether these contribution proceedings are statute barred pursuant to section 10 of the Limitation Act 1980 and raises a short point as to the proper construction of the section.The court was required to determine whether time ran under s.10(4) only once the parties had entered into a binding agreement for compensation, or whether something short of a binding agreement was sufficient to start time running.

Preliminary issue determined in favour of Claimant.

Mr Steven Walker QC (instructed by Mills & Reeve LLP) for the Claimant

To view the full judgment please click here.

Media coverage:

• Construction News – “Kier loses High Court cost claim deadline case”
• The Law Society Gazette law reports

5 April 2018