The immunity of sub-contractors

The primary question before HHJ Peter Coulson QC in John F Hunt Demolition Ltd v ASME Engineering Ltd [2007] EWHC 1507 (TCC) was a related one, namely whether a subcontractor is entitled to immunity in tort from an action by the employer where the contract between the employer and head contractor contemplates that the loss in question will be covered by the employer’s insurance.

John F Hunt: the facts

This was a trial of preliminary issues on the meaning of the insurance arrangements applicable to a construction contract. By a contract dated 30 June 2002 Whitehall engaged Build to design and construct commercial office premises in London. By a sub-contract dated 27 March 2003 Build appointed Hunt to carry out the demolition of the existing buildings. Hunt had earlier, in December 2002, engaged ASME as sub-sub-contractor to construct a temporary steel structure to support the building’s facades during its demolition. In April 2003, in the course of carrying out welding operations on the steel structure, the bitumen felt weather-proofing on the facades caught fire and serious damage ensued. For the purposes of the preliminary issues court proceeded on the assumed basis that the fire had been the fault of ASME.