Insurance Institute of London
ASG 228
Professional Indemnity Insurance
Architects and Engineers
by
Derek Tadiello
12 September 2001
Status
• What is an architect?
• Registered title
• What is an engineer?
Legal aspects affecting the profession
• Esso Petroleum v Mardon 1976
• Midland Bank v Hett Stubbs Kemp 1979
• Wessex v HLM Design 1994
• Henderson v Merrett 1995
• Holt v Payne Skillington 1995
• Baxall Securities v Sheard Walshaw 2000
Claims by non-clients
• St Martins v Sir Robert McAlpine 1993
• Darlingtonv Wiltshier
• Panatown v Alfred McAlpine
• Collateral warranties
– D&F Estates v Church Commissioners 1989
– Murphy v Brentwood DC 1990
• Contracts (Rights of Third Parties Act) 1999
Duties of architects and engineers
• Hudson’s Building and Engineering
Contracts
Standard of care
• Bolam v Friern Barnett 1957
• Eckersley v Binnie 1988
• Nye Saunders v Bristow 1987
• Warboys v Acme 1969
• Abbey Mortgagees v Key Surveyors 1996
• Samson v Metcalfe Hambleton 1997
• Victoria University, Manchester v Hugh
Wilson 1984
Examples of claims
• Clarifying the brief:
– Stormont Working Mens club v Roscoe Milne
1989
• Recommendation of builders:
– Valerie Pratt v George Hill 1987
– Partridge v Morris 1995
• Representations inducing a tender:
– Jarvis v Castle Wharf 2001
• Estimates:
– Nye Saunders v Bristow 1987
• Review design:
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–
–
–
Brickfield Properties v Newton 1971
Herbert Leach v Norman Crossley 1984
Tesco v Norman Hitchcox 1997
New Islington HA v Pollard Thomas 2001
• Delegation:
– Moresk Cleaners v Hicks 1966
– Merton v Lowe 1982
– EDAC v Moss 1984
• Knowledge of Standards & Codes:
– LB Camden v Frederick MacManus 1989
– Gloucester HA v Torpy 1998
• Specification of materials:
– Richard Roberts v Douglas Smith Stimson 1989
• Warn of further investigations:
– Eames v North Herts DC 1981
– Blair v Alderney Consultants 1998
• Extensions of time:
– John Barker v Portman Hotel 1996
• Estimating Areas and Profitability:
– Gable House v Halpern 1995
• Duty to warn:
– Chesham Properties v Bucknall Austin 1996
• Inspection:
–
–
–
–
–
–
East Ham v Bernard Sunley 1965
Leicester v Trollope 1911
Sutcliffe v Chippendale & Edmondson 1971
Brown v Scott & Payne
Corfield v Grant
George Fischer v Multi Design Consultants
1996
– Mckenzie v Potts 1995
Cover & wordings
• PI mandatory -Architects Registration
Board
• policies are claims made + notification of
circumstances
• originally negligence based, but now most
civil liability/legal liability wordings
• Wimpey v Poole 1984 (negligent act, error
or omission)
Damages
• Philips v Ward 1956
• Ruxley v Forsyth 1995
•
•
•
•
Richard Roberts v Douglas Smith Stimson 1989
LB Camden v McManus 1989
Harbutt’s Plasticine v Wayne Tank (1970)
Prudential v McBains 2000
• Hoadley v Edwards 2001
Adjudication
• S.108 HG,CAR Act 1996 - a party to a
construction contract has a right to refer a
dispute arising under the contract to
adjudication
• S.104 - A construction contract includes an
agreement to do architectural, design or
surveying work, or to provide advice on
building, engineering, interior or exterior
decorating or on the laying out of landscape
• Quick, rough & ready decision
• decision within 28 days unless a longer period
agreed
• although the dispute may be taken through
courts, an adjudicator’s decision is binding
until the court has reached a different
conclusion
• substantial sums may be payable pursuant to
an adjudicator’s decision which cannot
recovered for some time, or, in some
circumstances at all