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The management company of London's luxury residential development One Hyde Park has won a High Court case against construction firm Laing O Rourke Construction South Limited, securing a ruling in its favour over a repair claim valued at more than GBP 35 million, equivalent to about USD 48 million. The lawsuit concerned extensive pipework defects at the apartment complex, which were found to have arisen from improper installation during construction. The court held that the corrosion resulted from a failure to correctly install insulation, placing contractual liability on the contractor. One Hyde Park, one of the world's most expensive residential addresses, was completed in 2011 and includes apartments currently marketed for up to GBP 175 million. The ruling clears the way for large-scale remedial works that will require residents to temporarily vacate their homes in phases.
The manager of One Hyde Park, one of London's most exclusive residential developments, has secured a legal victory at the High Court in a long-running dispute over construction defects, with the court ruling that Laing O Rourke Construction South Limited is liable for pipework repairs costing more than GBP 35 million. The judgement was delivered earlier this week, concluding a case centred on corrosion discovered in the building's internal pipe systems. Advertisement
One Hyde Park was developed by property entrepreneurs Christian and Nick Candy in partnership with Qatari businessman Sheikh Hamad bin Jassim bin Jaber Al-Thani. Located near Hyde Park in central London, the scheme is regarded as one of the most expensive residential addresses globally, with at least one apartment currently on the market for around GBP 175 million, or roughly USD 240 million.
According to submissions made on behalf of One Hyde Park Limited, which owns the freehold of the development, the pipework had deteriorated because it was not installed correctly during construction. The apartment complex was designed and built by Laing O Rourke Construction South Limited, a subsidiary of the UK-based construction group Laing O Rourke, and was completed in 2011.
The claim was brought to recover the cost of removing and replacing most of the pipework throughout the building, a process expected to require residents to vacate their apartments temporarily in stages while remedial works are carried out. The value attributed to the pipework element of the claim was GBP 34.4 million, forming the bulk of the total amount sought.
Laing O Rourke Construction South Limited disputed that the pipework was defective but did not send representatives to defend the case at a hearing held last year. The wider Laing O Rourke group did not immediately respond to requests for comment following the ruling.
In her judgement, High Court judge Nerys Jefford held that One Hyde Park was responsible for undertaking the repairs, but found that the corrosion had occurred because the contractor failed to properly install insulation around the pipework. The court ruled that this amounted to a breach of contract, making Laing O Rourke liable for the remedial costs. The judge also found in favour of One Hyde Park on the remaining elements of its claim.
A spokesperson for One Hyde Park said the ruling represented a decisive outcome for residents and stated that the management company intended to ensure the contractor was held fully accountable and made full and fair payment for the construction defects identified by the court.
Source - Reuters
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