Commercial Disputes Weekly – Issue 2364 March 2025

Maritime
In a dispute arising from the engine failure of a vessel, following which general average was declared, the Commercial Court has provided clarification in relation to time limits where the Hague Rules are applicable by contractual incorporation using a clause paramount. The carrier tried to rely on other clauses with a 20 day time bar and that required the suit to have been served within one year, as a basis to reject the cargo interests’ claims as time barred (the claim had been issued within the time limit but not served). Although parties can modify the Hague Rules where they are incorporated by contract, the judge held that it would require clear words to agree a shorter time bar. Here the wording of the other contractual clauses did not indicate that they were intended to prevail over the clause paramount. The court also rejected the carrier’s argument that the service provision did not engage the anti-repugnancy provision in Article III.8 of the Hague Rules (which provides that clauses relieving or lessening the carrier’s liability are of no effect).
Tanga Pharmaceuticals Plastics Limited and others v Emirates Shipping Line FZE, The Alion [2025] EWHC 368 (Comm), 27 February 2025

Building Safety Act
This recent judgment between a building developer (“BDW”) and design and build contractor (“ACL”) has provided guidance on sections 130 and 132 of the Building Safety Act 2022. BDW wishes to obtain a building liability order against entities associated with ACL under section 130 in relation to fire safety and structural defects in five developments. The current application was for a section 132 order for information and documents to assist with its application under section 130. The court held that an information order can only be made against the body subject to the relevant liability, not any associated entities. It was not satisfied that ACL was subject to a relevant liability as required by section 132(3)(a) and could not therefore make an information order. The court’s guidance on section 130 included that building liability orders can be sought before the relevant liability is established, as well as afterwards.
BDW Trading Limited v Ardmore Construction Limited and others [2025] EWHC 434 (TCC), 27 February 2025

Assignment
The Technology and Construction Court has decided, as a preliminary issue, the interpretation of provisions in a consultancy contract for a development that related to assignment of benefits under the contract. The client went into liquidation and sought to assign its rights to pursue the consultant for alleged negligence to Mr Goldkorn. The court held that Mr Goldkorn was unable to pursue the claim because he was not a permitted assignee because the clause required that he acquire the client’s interest in the project, namely the construction works themselves, but he had not.
Goldkorn v MPA (Construction Consultants) Ltd and another [2025] EWHC 385 (TCC), 24 February 2025

Insurance
The Court of Appeal (“COA”) has considered appeals relating to ongoing issues with business interruption insurance claims arising out of the COVID-19 pandemic. The COA upheld the lower court decision that furlough payments made to businesses under the Government Coronavirus Job Retention Scheme should be deducted from the indemnity which those businesses would receive under their insurance policies. This was a result of the savings clause in the policies. The judge referred to the principle that an insurance policy is to provide an indemnity for the loss suffered, not for more than such an indemnity. The COA also rejected appeals on the application of the indemnity limits to the composite policies and held that they applied to each policyholder separately and were not aggregated limits.
Liberty Mutual Insurance Europe SE and others v Bath Racecourse Co and others [2025] EWCA Civ 153, 21 February 2025

Should you wish to discuss any of these cases in further detail, please speak with a member of our London dispute resolution team below, or your regular contact at Watson Farley & Williams: