In this issue: Key Legal Updates and Insights
In a recent legal dispute, a subcontractor resisted enforcement of an adjudication award by claiming that the adjudicator had exceeded their jurisdiction. The subcontractor argued that there were two separate disputes – a “smash & grab” claim for payment and a true value claim. However, the court ruled that there was just one dispute, as both claims were part of a single, disputed claim for a sum due. The court emphasized the importance of considering the nature of the dispute and how it was presented to the adjudicator in determining whether there was one or multiple disputes.
In another case, the court considered whether an exclusion clause could exclude or limit liability for fraud. The court outlined several principles related to exclusion and limitation clauses, emphasizing that liability for deliberate acts can be excluded if clearly stated in the contract. However, the court noted that a contracting party cannot exclude liability for its own fraud in inducing a contract. The court’s ruling clarified the scope of liability exclusion in cases involving fraud.
Furthermore, the court examined the duty of good faith in contracts and when it might be implied. The court highlighted that a duty of good faith could be implied in a contract if necessary for business efficacy and not contradictory to express terms. The court also discussed the meaning of good faith in practice, emphasizing that it depends on the context of the contract and the intention of the parties. The ruling provided valuable insights into the interpretation and application of a duty of good faith in contractual relationships.
Additionally, new regulations regarding retention reporting requirements and building safety management have been introduced, aiming to enhance transparency and accountability in the construction industry. The regulations specify information that must be shared as ‘golden thread information’ for higher-risk buildings and outline safety risk management requirements. These developments reflect ongoing efforts to improve building safety standards and practices.
Overall, these legal cases and regulatory updates highlight the importance of clarity and compliance in contractual relationships and building safety management. Stakeholders in the construction industry should stay informed about these developments to ensure legal compliance and best practices in their operations.
