SUB-CONTRACTOR DID NOT OWE DUTY OF CARE TO EMPLOYER IN RELATION TO DAMAGE TO EXISTING STRUCTURES

John F Hunt Demolition Ltd v ASME Engineering Ltd [2007] EWHC 1507 (TCC); [2007] All ER (D) 344 (June)

In John F Hunt Demolition Ltd v ASME Engineering Ltd [2007] EWHC 1507 (TCC); [2007] All ER (D) 344 (June) Judge Peter Coulson QC held that the terms of the main contract and the terms of the sub-contract negatived the existence of a duty of care owed by the sub-contractor to the employer in respect of damage to the existing structures caused by any negligence of a sub-sub-contractor. He also held that there is no rule of law that a party, A, must prove that he was liable to B before he can recover from C the sums paid to B by way of settlement. The settlement must, however, be a reasonable one and whether or not a particular settlement is reasonable is almost entirely a question of fact. If a settlement is held to be unreasonable, then it is ‘altogether irrelevant’ and cannot be relied upon when seeking to recover damages.