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Q&As
Subrogation It may first be useful to recap how subrogation works. In the event of a successful claim being made under an insurance policy, insurers can typically exercise rights of subrogation to seek to recover the amounts paid out under the policy from those liable for causing the loss/damage which led to the claim. Rights of subrogation enable the insurer to step into the shoes of the insured to bring an action in the insured’s name against the offending party or parties. One important exception to this position applies where joint names insurance is procured. See Practice Note: Subrogation in insurance and reinsurance. Joint names insurance under building contracts Building contracts commonly require either the employer or contractor to procure insurance of the works (and, in some cases, other structures) in the joint names of those parties.
Q&As
Whether a claim is to be pleaded as a breach of contract or a restitution claim will depend on the specific facts of the case. For information on situations in which a restitutionary claim can be made, see: Unjust enrichment and restitution—overview and Practice Note: Unjust enrichment—elements of the claim. For information on
Q&As
Legal ownership of a property in England and Wales where there is more than one proprietor will always be as joint tenants. This means that each owns the indivisible whole; and if one dies, the other seamlessly becomes the sole owner (or if there are more than two legal owners, each diminishing number of owners does, until there is only one left). This is known as the doctrine of survivorship. There is no transfer, and the interest of the co-owner does not fall into their estate; rather their interest is simply extinguished. Co-owning
Q&As
A legal easement is one which is created for an interest equivalent to a fee simple absolute in possession or a lease for a term of years absolute. It can be created by statute, by deed or by Will. In this case there is no executed document and so there can be no legal easement. If the servient land (the land which is subject to the easement) is registered, then even if there is a deed, registration of the easement is required if it is to take effect as a legal easement. For more information, see Practice Note: Easements—nature and characteristics. In this case
Q&As
It is well understood that section 52(1) of the Law of Property Act 1925 (LPA 1925) requires that all transfers of land must be by way of deed subject to certain limited exceptions in LPA 1925, s 52(2). A further exception is created by way of LPA 1925, s 54 as it allows for the ‘Creation of interests in land by parol’. This section reads: ‘(1) All interests in land created by parol and not put in writing and signed by the persons so creating the same, or by their agents thereunto lawfully authorised in writing, have, notwithstanding any consideration having been given for the same, the force and effect of interests at will only. (2) Nothing in the foregoing provisions
GLOSSARY
A suite of contracts which is the successor to the ICE Conditions of Contract, and is published by the Association for Consultancy & Engineering and the Civil Engineering Contractors Association.
PRECEDENTS
This Agreement is made on [insert date] Parties 1 [Name of Company], a company incorporated in England and Wales with registered number [insert company number] whose registered office is at [insert address] (the Company); and 2 [Name of consultant], of [insert address] (‘Consultant’). Background (A) The Consultant is in the business of [insert description] and has certain skills of use to the Company. (B) The Company wishes to engage the Consultant to provide [insert description] services to the Company on the terms and conditions of this Agreement. (C) The Consultant is an independent contractor willing to provide [insert description] services to the Company on the terms and conditions of this Agreement. FORTHCOMING CHANGE: When BSAIA 2025, s 48 is brought into full force on 1 October 2026, it will insert section 14A into IANA 2006. Section 14A establishes that references to ‘employing another person’ in IANA 2006, ss 15–24 include engagement under a worker’s contract or of individual sub-contractors (where an individual contracts to provide work or services that the engaging person has itself contracted to provide to a third party). Accordingly, the illegal working provisions and the
NEWS
Construction analysis: The Technology and Construction Court considered the interaction between bespoke and standard form contractual provisions, in a contract based on a Joint Contracts Tribunal (JCT) Design and Build Contract 2016. The contractor sought several declarations relating to the scope of its responsibilities under the contract, and the limits of an adjudicator’s power to fix the completion date for the works. The TCC found that, among other things, a schedule of derogations qualified the contractor’s design responsibility, pending certain conditions being met. However, it declined to grant a declaration relating to the allocation of planning risk under the contract, concluding that this was not a matter that could be decided without a fact-specific application. The TCC further confirmed that adjudicators have power under the Scheme for Construction Contracts to review and revise extensions of time, including by fixing an earlier completion date than one established through the contractual extension of time process.
PRACTICE NOTES
Most projects are underpinned by a complex web of contractual relationships between all the parties involved in the project (eg the project company, equity investors, contractors, sub-contractors, off-takers and suppliers). These documents are generally referred to as the 'project documents'. For more information, see: Project documents: issues for lenders—overview. In many projects, the construction contract is one of the principal project documents. What is a construction contract? In a typical project finance transaction, the project company is a special purpose vehicle (SPV) set up specifically for the purposes of the project (see Practice Note: Project finance—key project parties). Projects involving the construction of a new asset (ie 'greenfield' projects) will invariably necessitate significant construction work. If the project company is an SPV, it is unlikely to have the expertise to design and/or construct the project itself so it will enter into a construction contract with an appropriately-skilled contractor (the Construction Contractor) to provide those services. The purpose of a construction contract is to: • allocate construction risk to the party
Q&As
A lease for a term not exceeding three years can be created orally pursuant to section 54 of the Law of Property Act 1925 (LPA 1925). For the purposes of this scenario, it is assumed that the new residential lease to be granted is a long lease. In those circumstances, section 2(1) of the Law of Property (Miscellaneous Provisions) Act 1989 requires that a contract for the sale or other disposition of an interest in land can only be made in writing and only be incorporating all the terms which the parties have expressly agreed in one document, or, where contracts are exchanged, each of them. For the grant of a long residential lease therefore, it is necessary for there to be a contract or agreement for the grant of the lease that complies
Q&As
This Q&A assumes that the employee is employed on a permanent employment contract, rather than a temporary employment contract. If the employee is employed on a permanent contract of employment under which they work term-time only, it is clear that the employee’s employment continues during the holidays, until the date of termination. Under such a contract, the employee’s pay for the weeks they work during term-time, and holiday pay, will typically be spread over the whole 12 months. See eg clause 2 of Precedent: Clauses—term-time working. In those circumstances, the employee’s pay during the summer holidays relates to the
Q&As
In order to bring a claim in negligence against the solicitors, M will have to establish: • that it was owed a duty of care by the solicitors • that the solicitors breached their duty owed to M, and • that M’s losses were caused by the solicitor’s negligence and were reasonably foreseeable Was there a duty? Practice Note: Who can be parties to a professional negligence claim? considers who can be a party to a professional negligence claim; including issues as to when the professional (in this case solicitors) have agreed to act for the prospective claimant. Where solicitors are retained to act for M (as well as for B) and therefore,