Insurance Institute of London ASG 228 Professional Indemnity

Insurance Institute of London ASG 228 Professional Indemnity Insurance

Architects and Engineers by Derek Tadiello 12 September 2001

Status • What is an architect? • Registered title • What is an engineer?

Legal aspects affecting the profession • Esso Petroleum v Mardon 1976 • Midland Bank v Hett Stubbs Kemp 1979 • Wessex v HLM Design 1994 • Henderson v Merrett 1995 • Holt v Payne Skillington 1995 • Baxall Securities v Sheard Walshaw 2000

Claims by non-clients • St Martins v Sir Robert Mc. Alpine 1993 • Darlingtonv Wiltshier • Panatown v Alfred Mc. Alpine • Collateral warranties – D&F Estates v Church Commissioners 1989 – Murphy v Brentwood DC 1990 • Contracts (Rights of Third Parties Act) 1999

Duties of architects and engineers • Hudson’s Building and Engineering Contracts

Standard of care • Bolam v Friern Barnett 1957 • Eckersley v Binnie 1988 • Nye Saunders v Bristow 1987

• Warboys v Acme 1969 • Abbey Mortgagees v Key Surveyors 1996 • Samson v Metcalfe Hambleton 1997 • Victoria University, Manchester v Hugh Wilson 1984

Examples of claims • Clarifying the brief: – Stormont Working Mens club v Roscoe Milne 1989 • Recommendation of builders: – Valerie Pratt v George Hill 1987 – Partridge v Morris 1995 • Representations inducing a tender: – Jarvis v Castle Wharf 2001

• Estimates: – Nye Saunders v Bristow 1987 • Review design: – Brickfield Properties v Newton 1971 – Herbert Leach v Norman Crossley 1984 – Tesco v Norman Hitchcox 1997 – New Islington HA v Pollard Thomas 2001

• Delegation: – Moresk Cleaners v Hicks 1966 – Merton v Lowe 1982 – EDAC v Moss 1984 • Knowledge of Standards & Codes: – LB Camden v Frederick Mac. Manus 1989 – Gloucester HA v Torpy 1998 • Specification of materials: – Richard Roberts v Douglas Smith Stimson 1989

• Warn of further investigations: – Eames v North Herts DC 1981 – Blair v Alderney Consultants 1998 • Extensions of time: – John Barker v Portman Hotel 1996 • Estimating Areas and Profitability: – Gable House v Halpern 1995 • Duty to warn: – Chesham Properties v Bucknall Austin 1996

• Inspection: – East Ham v Bernard Sunley 1965 – Leicester v Trollope 1911 – Sutcliffe v Chippendale & Edmondson 1971 – Brown v Scott & Payne – Corfield v Grant – George Fischer v Multi Design Consultants 1996 – Mckenzie v Potts 1995

Cover & wordings • PI mandatory -Architects Registration Board • policies are claims made + notification of circumstances • originally negligence based, but now most civil liability/legal liability wordings • Wimpey v Poole 1984 (negligent act, error or omission)

Damages • Philips v Ward 1956 • Ruxley v Forsyth 1995 • • Richard Roberts v Douglas Smith Stimson 1989 LB Camden v Mc. Manus 1989 Harbutt’s Plasticine v Wayne Tank (1970) Prudential v Mc. Bains 2000 • Hoadley v Edwards 2001

Adjudication • S. 108 HG, CAR Act 1996 - a party to a construction contract has a right to refer a dispute arising under the contract to adjudication • S. 104 - A construction contract includes an agreement to do architectural, design or surveying work, or to provide advice on building, engineering, interior or exterior decorating or on the laying out of landscape

• Quick, rough & ready decision • decision within 28 days unless a longer period agreed • although the dispute may be taken through courts, an adjudicator’s decision is binding until the court has reached a different conclusion • substantial sums may be payable pursuant to an adjudicator’s decision which cannot recovered for some time, or, in some circumstances at all