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Linklaters decision: when pipes and insulation became an installation

Overview

Sub-sub-contractor's Southern Installation’s unsuccessful strike out application against a mechanical and engineering sub-contractor How Engineering Services’ claim in negligence for a contribution or indemnity.

The key issue was whether a sub-contractor could owe a duty of care to anyone other than its employer and be liable for the damage caused to a building by its defective works. Akenhead J, in giving his judgment on the strike out application, re-animated the debate on the "complex structure theory".

The Linklaters Business Services v Sir Robert McAlpine trial has now taken place, and Akenhead J decided that not only can a subcontractor owe a duty of care to the ultimate end user of a building but also that pipes and their insulation constitute "one installation" and therefore the complex structure theory did not apply on the facts. UK law firm Wragge & Co has the details.

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