UK Supreme Court Finds that Fitness for Purpose Warranty Is Not Limited by Obligation to Comply with Defective Standard
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Key takeaways
- On 3 August 2017, the UK Supreme Court delivered its judgment in MT Højgaard A/S v E.ON Climate & Renewables UK Robin Rigg East Limited and another [2017] UKSC 59, in which it ruled that a defective specification provided by an employer did not absolve a contractor of responsibility for complying with an express warranty of fitness for purpose.
- Although each case will turn on its own facts, the Supreme Court’s decision confirms that the courts will generally give full effect to a requirement that an item or work complies with prescribed criteria.
- This case serves as an important reminder that a contractor’s obligations will not be qualified even if the employer has approved a design or specified a design standard that is insufficient to meet other specified criteria.