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You are here: BAILII >> Databases >> England and Wales High Court (Technology and Construction Court) Decisions >> Scobie & Ors v Fairview Land Ltd [2008] EWHC 147 (TCC) (01 February 2008) URL: https://www.bailii.org/ew/cases/EWHC/TCC/2008/147.html Cite as: [2008] EWHC 147 (TCC) |
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QUEEN'S BENCH DIVISION
TECHNOLOGY AND CONSTRUCTION COURT
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
JAMES MARTIN SCOBIE and others |
Claimants |
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| - and - |
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FAIRVIEW LAND LIMITED |
Defendant |
____________________
Paul Letman (instructed by Finers Stephens Innocent LLP) for the Defendant
Hearing dates: 22, 29 January, 1 February 2008
____________________
VERSION
OF JUDGMENT
Crown Copyright ©
Mr. Justice AKENHEAD:
Introduction
various
common parts. Not all the flat owners are claimants.
Fairview
Land
Limited ("
Fairview")
was the developer and, by
various
agreements for lease,
Fairview
granted long leases to the Claimants or their predecessors in title of the flats. The Second Claimant was the management company with responsibility to maintain the common parts.
version
of the draft Amended Particulars is just over £4,500,000. It is clear that, although there are nominally some 750 defects pleaded in respect of the flats, they mostly comprise generic defects, including:
(a) "inadequate insulation in partition" in bathrooms;(b) shower "plasterboard partitions" in bathrooms;
(c) "
various
earthing, wiring, isolation and earth leakage"
various
joint statements being produced. For reasons which I find inexplicable, there has been little or no liaison between the experts for the last two months. The discussions must be resumed forthwith.
Various
unsuccessful attempts were made by the Claimants to add new claimants. A Re-Re-Amended Particulars of Claim was served in the summer of 2007. The Defendant had joined in Costain Construction
Ltd
as Part 20 defendant in respect of certain alleged defects. Trial was initially fixed for January 2008.
Various
parts of the Scott Schedule were struck out for
various
reasons. A mediation was to be organised. The Claimants were ordered to give specific disclosure of maintenance records and to provide further information as requested in certain respects, by 23 November 2007, failing which the claim in respect of the relevant items was to be struck out. The Claimant was ordered to "serve an up to date Re-Re-Re-Amended Particulars of Claim" which was expected to be simply an updating of the pleading. The order continued that "no amendment is permitted the effect of which would be to introduce a new item of claim or increase the quantum of an existing item of claim" without consent or the permission of the Court. It is clear that HHJ Wilcox neither sought to nor could cut out the Claimants from seeking to apply for permission to amend at any time. Further expert evidence was to be served by 25 January 2008, with supplemental liability and quantum reports limited to clarification only of any claims amended as set out earlier in the order (see above).
Fairview's
solicitors were asked to consent to the amendments but declined to do so on 3 December 2007. The Claimants issued their application on 3 January 2008. Also on 23 November 2007 the Claimants purported to provide the information which was the subject of the "unless" order. There followed in December a debate as to whether that order had been complied with.
version
of the draft Re-Re-Re-Re-Re-Amended Particulars of Claim was produced on or about 21 January 2008, which has further altered the basic pleading. However, that has been the working document to which I have been referred by the parties. I will refer to it as the "RePsoC".
The application to amend
(a) NHBC Requirements;(b) Preliminaries;
(c) Electrical defects;
(d) Plasterboard defects;
(e) Room changes;
(f) Deviations from joint statements;
(g) Claim shifting from Second to First Claimants;
(h) Miscellaneous.
I will deal with each in turn. As indicated to the parties at the conclusion of the adjourned hearing on 29 January 2008, I am prepared to grant permission to amend on all aspects subject to certain constraints. I proceed upon the basic principle that amendments ought in general to be allowed to enable the real disputes between the parties to be adjudicated upon unless there is prejudice to the other party which can not be compensated for by a costs order or unless there is harm occasioned to the administration of justice (see notes to CPR 17.3.5).
(a) NHBC Requirements
Fairview
is additionally in breach for failing to comply with the NHBC Technical Requirements. They had always pleaded (at Paragraph 4) that there was an implied term that
Fairview
would cause the works to be carried out in a "good and workmanlike manner, with good and proper materials and to the relevant British Standards and/or the equivalent European Technical specification and/or in accordance with the Building Regulations". They wish to add that the works were to be carried out "in accordance with the NHBC Technical Requirements". An earlier plea for which leave had historically been given was that
Fairview
owed the First Claimants a duty under the Defective Premises Act 1972. The Scott Schedule is amended in draft to plead in a number of respects that NHBC Requirements have not been complied with. There had been some complaints in the Scott Schedule which had already previously pleaded non-compliances with such NHBC Requirements; for instance, Item 50 and 51 pleaded a breach of "NHBC 7.2-D12".
Fairview
objects on the basis that it is too late, his experts can not deal with them in time and most importantly the claim that there is an implied term requiring compliance with the NHBC Requirements is untenable. He argues that, although the agreements for lease indicate that in effect
Fairview
will procure that the "NHBC Builddmark Scheme" will apply to the demised premises, all that this promises is that the stand alone NHBC Scheme will apply. There is no dispute that, by this Scheme underwritten by the NHBC the developer undertakes that the dwelling has been built in accordance with the NHBC Requirements.
view,
it is reasonably arguable that by implication the NHBC Requirements apply. I will certainly not decide this point now but it is arguable because the agreements for lease are predicated upon the basis that the NHBC
Landmark
Scheme will apply; in practice this is usually set up by the developer. That scheme imposes obligations on the developer or contractor to comply with the NHBC Technical Requirements. It is also arguable that as the NHBC Requirements are arguably simply reflections of proper standards of workmanship, design and materials, they provide a helpful tabulation of proper standards, which in effect are already pleaded.
(b) Preliminaries
voices
the suspicion that, as the sum has superficially increased by some £130,000, the Claimants are using the quantum experts' agreement to increase their preliminaries claim. Mr Fair-weather in his 4th statement says that in fact the total for preliminaries was originally £1,257,000, the implication being that some of the preliminary costs were contained within specific work costings and that these have been removed and brought under one preliminary costs banner; therefore he says that overall the sum has been reduced. Whilst I make no finding as to whether this explanation is true, it is not an unrealistic explanation and, for the purpose of this application alone, I accept it.
view).
In an email dated 17 January 2008 from Mr Fairweather to Mr Zetter of the Defendant's solicitors, some confusion is engendered because, although he supports the 58 and 64 weeks programmes, he says that the 80 or 78 weeks periods used in earlier programmes for proposed remedial works "are irrelevant". He explains however that 17 weeks are required to redecorate the staircases and suggests that there might well be some but not complete overlap between the two main periods.
(c) Electrical defects
Ltd
("MJW"), to carry out tests at a further 56 flats in October and early November 2007. Copies of the detailed inspection reports were submitted to the Defendants in batches in October and the first part of November 2007. Although all the tests were physically carried out by more than one person, there was one person in charge; that appears to have been Mr Wilcox. I am told that a typical report is that dated 24 October 2007 relating to 28, Langbourne Place. This indicates
various
faults in and "Observations and recommendations for Actions to be Taken" box. In that and the "Summary of the Inspection" boxes, the following is said:
"1. Ensuite fan not working.2. 230v fan in Zone 1.
3. Single socket in airing cupboard poorly terminated.
4. No earth fly leads to metal back boxes.
5. Kitchen ring circuit incorrectly wired spurs off of spurs.
6. Shower pull cord indicator not working
7. No fan isolators fitted.
8. Distribution not correctly identified or labelled, also requires an insulating back plate and fire barrier.9. CPC's not correctly terminated in plasterboard switches.10. Smoke alarm requires terminations checked and base fitted.11. Unknown condition of Hob outlet plate/Cooker fusing.12. Many cord grips have been removed or damaged.13. No ID on RCD CPC.14. Novisual
4mm2 CPC around bathroom.
15. Many electrical appliances/equipment in the wrong zones in bathrooms.16. CPC's twisted together throughout."
visit
each of the 56 flats to cross check the reports and there is insufficient time before the trial to do that and for him to prepare reports. He also points out that, as Mr Easton is not an electrical expert, either the Claimants will not have an electrical expert or they will have to rely upon Mr Wilcox as a hybrid type of expert.
views
as to responsibility
very
soon; for instance, there may be for one or more of the alleged faults a fairly obvious point that they are fair wear and tear.
view
as to whether there is liability and for Mr Higginbottom to form a
view
as to costing. To protect against possible prejudice, I order that:
(a) The Claimants serve such expert evidence relating to electrical defects within a week, that is by 5 February 2008 4.30 pm.
(b) Reasonable requests by the Defendant and its experts for access to the flats should be acceded to promptly.
(c) At the special Pre-Trial review hearing which I have reserved on 14 February 2008, I will review progress on this aspect of the matter, with the option of adjourning the hearing of all or some of the electrical defects claims possibly at the expense of the Claimants. This is a justified approach given that the seven day period for the trial is in any event an ambitious one.
If reliance is to be placed upon Mr Wilcox or an MJW representative as expert, somewhat more may well be required to seek to demonstrate default than is simply contained in the test reports; I leave that however to the Claimants.
(d) Plasterboard defects/(e) Room changes
(f) Deviations from joint statements
various
plasterboard complaints in which the quantum sought to be claimed has become £3,645. Examples are Items 605, 609 and 610. A detailed breakdown (with some 26 items in it with rates and descriptions of work and materials) was shown to me which, I was told, had been provided to the Defendant or its quantum expert in November 2007.
very
limited agreements about the plasterboard items: there is agreement about prices being related to the use of a single contractor for remedial works and the use of agreed labour rates and material prices. There is no agreement about what the plasterboard complaints should be priced at. In the "Matters not agreed" part of the statement, appear these entries:
"60 no Plasterboard partitions… Whilst the Claimants' costing of these works has significantly reduced (from £4,839 down to £1,421.58) the quantum of this claim has not been finally agreed, as the experts have not reached agreement over the duration…for each element of the works…
27 no Plasterboard/insulation to bathroom/shower… Whilst the Claimants' costing of these works has significantly reduced (from £8,899) down to £258.58 the quantum of this claim has not been finally agreed, as the experts have not reached agreement over the duration…for each element of the works…"
It all depends what "these works" mean in this context. It would be slightly surprising (if not unheard of) if an expert had agreed that the quantum was worth no more than £x and came along a few weeks later and asserted that it was £30x. I am not prepared to accept at this stage that, based on entries in a "not agreed" part of a joint statement, the Claimant's expert either did or intended to agree the lower figures for the work which he considers necessary to put right the alleged defects. If I am being insufficiently robust about this at this stage, it will of course be open to the Defendant's Counsel at trial to cross examine him as to his credibility on this topic. It would be wrong to cut out the Claimants from seeking to rely upon what they believe to be the bona fide evidence of their expert by reason of some possible inference that he (only) might be going back on something he signed up to in a joint statement.
(g) Claim shifting from Second to First Claimants
various
common losses which were claimed by the Second Claimant but which are now sought to be claimed by the individual Claimants. These are claims for the costs of accommodation and removal and storage of furniture during the remedial work and for the loss of rental in respect of owners who let out their flats. Objection is taken on the basis that they are inadequately particularised and that in the light of the unmeritorious claim for these heads by the claimant company "the Defendant has assessed its position accordingly". Against those points, the Claimants say that it was obvious that the wrong Claimant was claiming for these types of loss and the quantum is sufficiently particularised.
very
common ones when individual claimants are asserting that they have to
vacate
their houses during remedial work. They are relatively easily checked. For instance, the need to remove and store an average flat's furniture (and the costing thereof) is eminently researchable in fairly short order; the period of 6 weeks can be readily assessed. There is no real prejudice here. If the Defendant feels it necessary to "re-assess" its position, it can do so in ways in which its costs position can be protected.
Miscellaneous
Claimants' application for leave to adduce in evidence a quantum report of their expert, Mr Easton
view
that this objection is in substance unfounded. First, even if the Defendant's expert found the information confusing, all that he had to do, and should have done, was to contact the Claimants' expert and asked for an explanation. Secondly, the information, whether ultimately proved to be justified or not, is reasonably clear. For instance, there is a repetitive item totalling £1003.95, which relates to "Ensuite (Extra over for plasterboard works etc") which obviously relates to the "incorrect plasterboard items" similarly priced in the RePsoC. Detailed breakdowns are provided against largely repeated items throughout these files whilst specifications are also provided. It is not usually for the Court to dictate how expert evidence is to be presented. Although some prose explanation and some arithmetical collections would have been helpful, the fact that they have not been provided should not mean that the Claimants should be barred from adducing the information provided.
Strike-out
"Mr Easton has allowed 10 anchors @ £2000 each at one metre centres. The cost per anchor is taken form SPONS [a well known pricing publication].
No schedule of works is required, they are just rock anchors."
view
that this is an unsatisfactory answer which does not comply with the learned judge's order. Rock anchors are usually used in rock, often in tunnels: holes are drilled for
varying
distances, a bolt inserted in to the hole, the hole filled sometimes with resin or grout and the other end of the bolt fixed or attached to the structure which needs supporting. The use of rock anchors in East London, an area more known for London Clay, is at first blush surprising but it may be that there is some rock in the area of the flats. Any schedule of works needs to identify what material will be used (e.g. stainless steel, alloys, concrete, grout, resin), the depth and angle for the anchors and preparatory work (e.g. excavation, hole drilling, support of the wall). Mr Easton has produced detailed schedules of work for numerous other items. There is no good reason which has been advanced why there has been no such schedule produced in this case. The reference to SPONS is only to identify the overall market price and not the schedule of work.
General
view that it is now necessary for both sides and their experts in this case to cooperate and embark upon a period when what I called in argument "ultra-efficiency" was to be applied. It would be better if there was a concentration upon trial preparation. The experts must resume talking and producing further joint statements to assist the parties and the courts. At the Pre-trial review now fixed for 14 February, I will review, in HHJ Wilcox's absence, where the parties have got to and what needs to be done at and for the trial. I will consider the question of costs of and occasioned by the amendments secured by the Claimants and of the application, albeit that I gave some provisional indications in that context at the hearing.