Enforceability of Net Contribution ClausesMarch 2014
On 27 March 2014, the Court of Appeal handed down Judgment in the case of West v Ian Finlay Associates. The Defendant, architect on a significant residential property redevelopment, has successfully overturned the first instance decision of the Technology & Construction Court. The Court of Appeal enforced the net contribution clause in the architect’s appointment to limit its losses by excluding those for which the main contractor was responsible. The Judgment is very welcome news for consultants and their insurers, demonstrating that, provided that the clause is clearly worded and is not unreasonable, net contribution clauses will be enforced by the Courts (even, as here, when the employer is a consumer client).
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