- 21 Jan 2025
- •
- 2 min read
Building Safety Act – In the Court of Appeal
The judgment in URS Corporation Ltd v BDW Trading Ltd [2023] EWCA Civ 772 was the first Court of Appeal judgment to examine the impact of the Building Safety Act 2022 (BSA) since its enactment. The judgement addresses critical issues related to defects claims under the Defective Premises Act 1972 (DPA), including the implications of the retrospective 30 year limitation period for bringing claims. This extension, from 6 to 30 years, is one of the most contentious changes introduced by the BSA, as it applies retrospectively and is treated as if it was always in effect.
URS provided structural designs for developments completed between 2005 and 2012, commissioned by BDW. Following the Grenfell Tower disaster in 2017, BDW conducted extensive safety investigations, uncovering structural design defects. The buildings showed no physical damage and so these defects only came to light in 2019, by which time BDW no longer owned the properties.
Key legal developments
BDW initially issued professional negligence claims against URS, but these claims in contract and under the DPA were time-barred. In 2022, following the BSA’s extension of limitation periods, BDW sought and were granted permission to amend their pleadings to include a DPA claim, as well as claims under the Contribution Act 1978.
In February 2023, Lord Justice Coulson directed that appeals arising from these hearings be consolidated due to issues stemming from Section 135 of the BSA.
Court of Appeal findings
The Court of Appeal made several significant rulings:
- Developers can owe and be owed a duty under the DPA, alongside lay purchasers.
- Developers are entitled to claim contributions, even if no claim has been made against them.
- The 30-year retrospective limitation period is valid for proceedings already underway.
- For defects causing no immediate physical damage, the cause of action accrues at the date of practical completion, not when the defects are discovered.
Implications for developers
This judgment provides reassurance to developers like BDW, enabling them to pursue claims under both the DPA and the Contribution Act. It establishes precedent for recovering losses incurred in remediating defective buildings completed since the early 1990s. Developers can now hold contractors, sub-contractors, designers, project managers and others in the supply chain accountable.
Moreover, the decision opens the door for parties in ongoing litigation to amend pleadings and revive previously time-barred claims under the DPA. While this offers new opportunities for developers, it might also raise concerns, as these claims may also be brought against them as well.
Conclusion
The judgment marks a significant development in construction law, providing clarity on the retrospective application of the BSA and the extended limitation period. Developers and their advisors must remain vigilant in assessing the potential for claims under this evolving legal framework. Contact our construction dispute resolution team today for further advice.
Disclaimer
This information is intended for general informational purposes only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0800 2800 421.
