Adam Benedict makes legal history by obtaining finding of a ‘relevant liability’ under the BSA 2022 and justice for the claimants against a major rooftop developer
Adam Benedict and Michael Levenstein of Gatehouse Chambers have secured a resounding victory for their clients, 381 Southwark Park Road RTM Company Limited and various claimant leaseholders, against a major rooftop developer, “Click”, operating as the Click Group of Companies.
The judgment is of historical importance because Click’s various breaches gave rise to the first ever High Court finding of a “relevant liability” under s130 of the Building Safety Act 2022 (which concerns the High Court’s ability to make Building Liability Orders against a body corporate) as a result of a “building safety risk”. The ruling confirms that findings of liability for building safety can potentially extend beyond the original developer to include associated companies. In short, if a developer uses a subsidiary or special purpose vehicle (SPV) for a project, liability for any defects may still be transferred to other companies within the same corporate group. This case is likely to be of further significance because the claimants have applied for a Building Liability Order to be made against one or more associated companies within the “Click” corporate group, including the parent company, Click Group Holdings Limited. If successful, this is expected to be the first time such a remedy will have been granted by the High Court since the new statutory regime was enacted following Grenfell.
This finding and the potential making of a Building Liability Order in this case will be of significant concern to those in the construction industry (and their professional advisers), as the High Court is able to hold developers and associated companies to account for building safety, and they will not be able to avoid liability simply by dissolving the subsidiary/SPV responsible for the relevant construction project.
Equally, it will also be seen as a major victory for leaseholders and regulators, as the increased accountability will encourage better compliance with safety standards, and will improve claimants’ chances of claiming compensation. In this case, the claimants have been awarded approximately £1.2 million (representing the vast majority of their claim value), with further amounts sought (including legal costs) at a subsequent hearing in the near future. At that hearing, it is expected that Jefford J will address the claimants’ application for a Building Liability Order and, it is hoped, will help establish a framework within which the High Court may handle similar claims that will lead to more consistent and predicable outcomes for aggrieved parties in future.
The Adam Benedict team consisted of:
Adam Creasey, Managing Director
Grace Jenkins, Associate
Harrison Carr, Trainee Solicitor
Adam Benedict would also like to thank the following professionals for their helpful assistance in securing this historic judgment:
Michael Levenstein, Barrister, Gatehouse Chambers
John Rivett, Building Surveyor, Berrys
Philip Ebbatson and Panos Rousakis, Structural Engineers, HKA
Jon Chick, Structural Engineer, J P Chick & Partners
Alastair Ferguson, Architect, Hawkins Associates
David Daly, Quantity Surveyor, Novus Resolve
Brendan Weekes, Forensic Accountant, Evelyn Partners
Leo Scarborough, Director, Buildsmith Solutions
Most importantly, Adam Benedict would like to thank our incredible clients, who continue to demonstrate tremendous courage and resilience under lifechanging circumstances.
A link to the judgment can be found in the National Archives here: 381 Southwark Park Road Rtm Company Ltd & Ors v Click St Andrews Ltd (in liquidation) & Anor - Find Case Law - The National Archives.
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