Loss Prevention Loss Prevention Alerts

LPA 68 – Guidance on Duty of Care arising from Third Party reliance on a geotechnical report: BDW Trading Ltd v Integral Geotechnique (Wales) Ltd [2018] EWHC 1915 (TCC)

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On 25 July 2018 the Technology and Construction Court (“TCC”) handed down judgment in the case of BDW Trading Ltd v Integral Geotechnique (Wales) Ltd [2018] EWHC 1915 (TCC) which will be of great interest to AGS members. In the judgment, the TCC provides useful guidance on if a duty of care arises when a geotechnical engineer’s report prepared for the seller of land is relied on by the purchaser and what constitutes negligence when considering the content of such reports. This judgment serves as a useful reminder of the significant commercial value of formal assignments of reports (or collateral warranties or letters of reliance) to potential purchasers and other third parties. By agreeing to such mechanisms, consultants are creating entirely new liabilities that they would not otherwise have.

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