Owner of insolvent sub-contractor liable as primary obligor (Multiplex v Dunne)

Table of contents

• Original news
• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Primary liability
• Amount secured
• Insolvency Rules
• Case details

Article summary

Construction analysis: In a summary judgment application, the court held that the defendant was liable as primary obligor under the terms of an agreement under which his company (the sub-contractor) had been provided with a £4m cash advance by the claimant contractor. It rejected the defendant’s argument that it only imposed secondary obligations on him.