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Swan Housing Association Ltd v Donban Contracting UK Ltd (formerly Vision Modular Structures UK Ltd)

19 March 2021

Citation: [2021] EWHC 972 (TCC)

In a dispute concerning allegedly defective cladding on an apartment block in Poplar, East London, the claimant housing association (‘Swan’) applied for an extension to the period for service of the claim form on the defendant contractor (‘Donban’) in order to gain more time to investigate and formulate the claim. Donban resisted the application on the basis that: 

(1) the claim had been issued on a speculative basis with the intention to avoid a limitation defence accruing, and was therefore abusive of the court’s process; 

(2) Swan had sued the wrong party; 

(3) the warranty on which Swan relied related to a different project entirely; 

and (4) the action must be statute-barred because any breach would pre-date practical completion, which had occurred just under 12 years prior to the issuance of the claim form.

Held (dismissing Swan’s application): whilst there was insufficient material before the court for it to conclude either that the claim was abusive or that Swan’s conduct in issuing the claim had been dilatory, the problems faced by Swan were sufficiently formidable that it would not be right to grant the extension.

Callum Monro Morrison represented the successful defendant.

Link to judgment: https://uk.westlaw.com/Document/ID2E084408B3C11EB9D7CC81F267FF28A/View/FullText.html

Counsel