SWANSEA STADIUM MANAGEMENT CO LTD v CITY AND COUNTY OF SWANSEA AND INTERSERVE CONSTRUCTION LTD

[2019] EWHC 989 (TCC), Technology and Construction Court, Pepperall J, 17 April 2019

Effect of Notice of Completion of Making Good Defects – Whether first defendant had taken all reasonable steps to enforce its rights

The claimant entered into a 50-year lease with the first defendant, which owned a stadium which was used for playing both football and rugby. The stadium was built by the second defendant pursuant to a contract with the first defendant. The claimant was given the benefit of a collateral warranty from the second defendant in respect of the building works and the first defendant also executed a deed in 2006 under which it agreed to take all reasonable steps to enforce its rights under the building contract. There were a number of defects in the building. The second defendant completed remedial works in respect of these defects and a notice of completion of making good defects was issued in accordance with clause 16.4 of the contract with the first defendant. The first and second defendants subsequently entered into a settlement agreement in respect of the second defendant's final account. The claimant's primary claim against the defendants was struck out on the basis that it was statute-barred. In the present case the claimant sought to bring two alternative claims.