Does A Home Owner Have A Claim Against A Builder For A Defective Flue Discovered Over 12 Years After Construction?
The Court of Appeal, in the case of Robinson v. PE Jones (Contractors) Ltd [2011] EWCA Civ 9, were faced with this question in the context of a claim by a house owner for damages in respect of a latent defect caused by the builder of the house.
Background
In 1991 PE Jones agreed to build a house for Mr and Mrs Robinson. Whilst the house was under construction PE Jones agreed to construct to gas flues in the lounge and family room and in order to do so constructed a second chimney flue. Construction was completed in 1992. In 2004 a British Gas service engineer attended to test the gas fires and recorded that there was a 'poor flue run' . A surveyor then inspected the flues and found that they were not constructed in accordance with good building practice or in accordance with Building Regulations. The cost of remedial works was in excess of £30,000.
Mr Robinson issued a claim to recover this sum from PE Jones in Decembe4 2006 claiming breach of contract and/or negligence. The claim was struck out because (a) it was too late to bring a claim based on contract (6 years from date of the breach) and (b) PE Jones did not owe MR Robinson a duty of care for pure economic loss. Mr Robinson appealed to the Court of Appeal.
The decision
In an masterly judgment Jackson LJ reviewed the authorities and held that:
Contractual obligations arise from the consent of the parties and the principle that contracts should be enforced is vital to the functioning of society. Tortious duties are imposed by law (without the need for agreement of the party) because society demands certain standards of conduct. Generally contractual obligations and duties of care in tort are not co-extensive. The law of tort imposes a more limited duty upon the manufacturer and/or builder. That more limited duty is to take reasonable care to protect the client against suffering personal injury or damage to other property. In other words pure economic loss is not ordinarily recoverable. However, pure economic loss may be...
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