Construction: Can a Sub-Contractor be Liable for Ecomomic Loss?

A recent decision of the Technology & Construction Court opens the way for the court to decide when a sub-contractor owes a duty of care in tort to the main contractor's employer. The case is likely to involve a re-examination of 'complex structure' theory as it applies to sub-contractors and clarification of the circumstances in which a sub-contractor can be liable for economic loss. In this case a sub-sub-contractor applied to strike out a claim for a contribution against it by a sub-contractor on the basis that it was clear law that it did not owe a duty of care to the employer. The court turned down that application and, therefore, the claim will proceed.

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A recent decision of the Technology & Construction Court opens the way for the court to decide when a sub-contractor owes a duty of care in tort to the main contractor's employer. The case is likely to involve a re-examination of 'complex structure' theory as it applies to sub-contractors and clarification of the circumstances in which a sub-contractor can be liable for economic loss. In this case a sub-sub-contractor applied to strike out a claim for a contribution against it by a sub-contractor on the basis that it was clear law that it did not owe a duty of care to the employer. The court turned down that application and, therefore, the claim will proceed.

The claimant leaseholder of a building, Linklaters Business Services (LBS), is suing the main contractor, Sir Robert McAlpine Limited, for...