Cases - Baker & Davies plc v Leslie Wilks Associates

Record details

Name
Baker & Davies plc v Leslie Wilks Associates
Date
[2005]
Citation
EWHC 1179 (TCC)
Legislation
Keywords
Contract administration
Summary

The claimant building contractors engaged the defendant engineers to monitor a property for cracking. The engineers failed to report the full extent of the problem and it was not in fact discovered for a further two years. Any claims the employer may have had against the building contractors were settled by the payment of money and an agreement that the contractor would carry out remedial works at its own cost.

The contractor then pursued the engineers for a contribution. Section 1(4) of the Civil Liability (Contribution) Act 1978 allows a claimant in the contractor's position to recover a contribution in respect of 'any payment in bona fide settlement'. The question faced by the court was whether the contractor could recover the costs it incurred remedying the works itself as part of the settlement agreement. It was held that the word 'payment' is capable of including 'payment in kind', at any rate where that payment is capable of valuation in monetary worth. Accordingly, the contractors' claim could succeed.