‘LIABILITY FOR COSTS’ UNDER A COLLATERAL WARRANTY

Glasgow Airport Ltd v Messrs Kirkman & Bradford [2007] CSIH 47, 6 June 2007

In Glasgow Airport Ltd v Messrs Kirkman & Bradford [2007] CSIH 47, 6 June 2007, the Inner House of the Court of Session considered the meaning of the phrase ‘Sub-Consultant’s liability for costs’ in a collateral warranty. It held that it covered not only the costs of repair, renewal and/or reinstatement of any part or parts of the work but that it also extended to consequential losses suffered by the pursuers as a direct result of the defenders’ breach provided that these losses were not too remote a consequence of the breach.