Background
In the wake of the Grenfell Tower fire, many developers elected to undertake investigations on buildings with cladding similar to the kind that had been incorporated in Grenfell Tower. Late in 2019, BDW noticed cracks in the structural slab of a building known as Citiscape, a 95-flat high-rise block in Croydon. Upon closer examination, it was discovered that the structural integrity of the slab was so deficient that the building was at risk of structural failure. This resulted in the block being evacuated and remedial works being carried out to stabilise it.
The parties and the relevant buildings
Previously known as Barratt Homes Limited, BDW was the owner and developer of the buildings in question at the time they were built. The appellant – URS Corporation Limited (URS) – formerly United Research Services, is a global engineering, design and construction company headquartered in the US. It was acquired by AECOM in 2014.
BDW had brought proceedings against another company too, but the appeals that came before the Court of Appeal only concerned URS. BDW alleged that URS was responsible for the negligent structural design.
Not all of the buildings in question exhibited physical cracking of the type in the Citiscape block, but the findings from the investigations carried out showed that these buildings had been built to dangerously inadequate structural designs.
The Court of Appeal’s decision concerns two of BDW’s developments
Capital East
Capital East in London consisted of five blocks containing of about 350 apartments that range from 10 to 18 storeys in height. Practical Completion occurred between March 2007 and February 2008. The apartments were sold by BDW pursuant to individual sale contracts.
Freemens Meadow
Freemens Meadow in Leicester consisted of seven towers (six storeys in height) with each block containing 32 apartments. Practical Completion of the blocks occurred between February 2005 and October 2012. The individual apartments were sold to purchasers on long leases and BDW’s freehold interests were transferred on various dates, the most recent being in May 2015.
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