ARCHITECTS HELD NOT TO HAVE ACTED AS UNDISCLOSED PRINCIPALS

Alfred McAlpine Construction Ltd v Forum Architects [2002] EWHC 1152 (TCC)

In Alfred McAlpine Construction Ltd v Forum Architects [2002] EWHC 1152 (TCC) Judge Humphrey LLoyd held that the defendant firm of architects had not acted as undisclosed principals for a company that had been set up by the firm. The company set up by the firm had been dissolved so that there was no point in the contractors bringing a claim against the company itself. So they sought to bring a claim against the firm of architects instead. Their claim failed. It was held that, on the facts, the company had not acted as agents for the firm of architects. The contractors had entered into a contract with the company, not the firm of architects, and there was no evidence to show that the arrangements entered into by the parties were not genuine. Judge LLoyd therefore held that the firm of architects had not acted as an undisclosed principal, that the firm of architects had never performed any of the architectural services in connection with the project and that the firm did not owe a common law duty of care to the contractors or to the employers under the project.