Case details

MT Højgaard A/S (Respondent) v E.On Climate & Renewables UK Robin Rigg East Limited and another (Appellants)

Case ID: UKSC 2015/0115

Case summary

Issue

Whether a contract for the design and installation of foundations for an offshore windfarm imposed a fitness for purpose obligation on the contractor amounting to a warranty that said foundations would have a service life of 20 years.

Facts

The appellants employed the respondent contractor to design and build the foundations for a windfarm. The foundations were designed in accordance with an international industry standard which contained a flaw. The foundations failed soon after they were built. A dispute arose over which party was liable for the remedial work. The respondent contended that it had complied with its contractual obligations and issued proceedings seeking a declaration that the appellants should pay, but was unsuccessful; the judge found that the respondent was in breach of a contractual warranty that the foundations would have a service life of 20 years. The Court of Appeal upheld the respondent’s appeal on the basis that the contract only required that the foundations should have a "design life" of 20 years, meaning that they would probably, but not necessarily, function for 20 years. The appellants submit that the contract imposed a fitness for purpose obligation which did amount to a warranty for a service life of 20 years".

Judgment appealed

[2015] EWCA Civ 407

Parties

Appellants
  1. E.On Climate & Renewables UK Robin Rigg East Limited
  2. E.On Climate & Renewables UK Robin Rigg West Limited
Respondent

MT Højgaard A/S

Appeal

Justices

Lord Neuberger, Lord Mance, Lord Clarke, Lord Sumption, Lord Hodge

Hearing start date

20 Jun 2017

Hearing finish date

20 Jun 2017

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Watch hearing
20 Jun 2017 Morning session Afternoon session