- Claim struck out for lack of valid assignment of JCT Contract (Aviva v Shepherd Construction Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Construction analysis: In this judgment the court considered the operation of the assignment provisions within the JCT suite of contracts. Although like provisions have been included in the JCT contract since the 1987 form, this appears to be the first meaningful consideration of the clauses. Firstly, the court held that to benefit from assignment under Clause 7.1, the Contractor would have to be on notice of any purported assignment by the Employer. The claimant had failed to give any such notice. Secondly, the court held that the further right of assignment of Clause 7.2 was extremely limited such that it was only effective as between the original Employer and the original transferee of land or grantee of a leasehold interest, and that it only provided the limited right of being able to sue in the name of the original Employer for the Employer’s losses. As the claim had been brought by a subsequent purchaser, Aviva, there was no entitlement to rely upon Clause 7.2. The claim was accordingly struck out, and permission to amend the particulars of claim to join the original Employer was dismissed as such application was made after expiry of the applicable limitation period. Written by Ryan Turner, barrister at Lamb Chambers.
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