NETWORK RAIL INFRASTRUCTURE LTD v FERN TRUSTEE 1 LTD AND OTHERS

[2022] CSIH 32, Inner House of the Court of Session, Lord President Carloway, Lord Malcolm and Lord Woolman, 8 July 2022

Settlement agreement – Whether tenants entitled to insist that the Owner’s Completion Notice included their complaints that remedial works had not been satisfactorily completed

The pursuers were tenants of premises. The first defender was the proprietor of the premises and the third defender was the contractor which carried out works to the premises. A number of defects became apparent in the works and this resulted in the parties entering into a number of settlement agreements under which the contractor agreed to carry out and complete, at its own cost, certain remedial works to the premises. The parties also entered into a Remedial Works Agreement and it was clause 3.27 of the latter agreement that was the focus of the present dispute.