SOLICITORS HELD TO BE NEGLIGENT IN FAILING TO CONFIRM NHBC COVER

Rickards v Jones [2002] EWCA Civ 1344 (29 July 2002)

In Rickards v Jones [2002] EWCA Civ 1344 (29 July 2002) the Court of Appeal held that, on the facts of the case, it was incumbent on the defendant solicitors, who were acting for the claimant purchasers, to contact the National House-Building Council (‘NHBC’) to confirm, at the least, that the builder of the house which the claimants intended to purchase remained a member of the NHBC scheme and to confirm that NHBC cover would validly come into existence after they had filled in and returned the relevant form. The builder had in fact ceased to be a member of the NHBC with the consequence that the claimant had no effective claim against NHBC when it was discovered that the house had been built defectively. The builder was also insolvent so that the claimants had no means of redress against him. But it was held that they did have a claim against the defendant solicitors.