Cases - Point West London v Mivan Ltd

Record details

Name
Point West London v Mivan Ltd
Date
[2012]
Citation
EWHC 1223 (TCC)
Keywords
Construction - contract administration - defects
Summary

A settlement agreement was reached between a developer of a large apartment block in London and a building contractor. At the time of the agreement there were persistent defects in the curtain walling system. These defects were referred to in correspondence between the parties and it was agreed that a further payment would be made.

The agreement was drafted to include settlement for 'all works carried out' and 'any corresponding outstanding matters'.

The developer later sought to claim losses relating to the defective works. The contractor argued that the settlement agreement released them for any defects patent at the date of the agreement.

The judge found, on the facts that it was intended that the settlement agreement was to release the contractor from liability for defects that were patent at the date of the agreement, and therefore releasing them from liability for the further remedial work required to correct the curtain walling system.

The drafting of the settlement agreement being a 'full and final settlement in respect of any and all outstanding matters', combined with financial settlement had the effect of releasing the contractor from defects that were patent at the time of the agreement.