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In this issue: Advertising, marketing and sponsorship Agency and distribution Consumer protection Contracts E-commerce International Public procurement Supplier management LexTalk®Commercial: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Advertising, marketing and sponsorship ASA rulings—31 July 2024 The Advertising Standards Authority (ASA) has flagged the Person(s) unknown trading as Mendio Life for inquiry after insights from its Active Ad Monitoring system. A Meta promotion by Mendio Life for an acupressure clip asserted medical effects for a device lacking the necessary conformity marking and absent from the Medicines and Healthcare Products Regulatory Agency (MHRA) register. This decision sits within the ASA’s wider work on advertisements asserting treatment for prostrate issues, as part of a consumer-protection drive against such claims. The ASA also received a complaint about Nultqh GB’s Meta advert for a prostate patch, which advanced medicinal claims for an unlicensed item. The...
In this issue: Adjudication Litigation Arbitration Building safety Procurement in Construction Construction industry news Daily and weekly news alerts New and updated content Construction trackers Adjudication Joint ventures on construction projects—who can adjudicate? (Darchem Engineering v Bouygues Travaux) The TCC declined to summarily enforce an adjudicator’s award in favour of a company that formed one half of an unincorporated joint venture. The JV, not the individual company, had been appointed as sub-contractor under a sub-contract for works at a nuclear facility. The court determined the company alone was not a party to that sub-contract, meaning the adjudicator lacked jurisdiction. The ruling underscores the need to assess carefully the legal ramifications of delivering projects through an unincorporated joint venture. See News Analysis: Joint ventures on construction projects—who can adjudicate? (Darchem Engineering v Bouygues Travaux). Litigation Defence strike out—still leaves a hill to climb in proving the claim in the absence of the defendant and...
January 2024’s ruling in Archer Western-De Moya Joint Venture v Ace American Insurance Co, following the 2023 outcome in South Capitol Bridgebuilders v Lexington Insurance Co, is set to draw attention from insurance market participants in other jurisdictions, given the shortage of reported LEG decisions, not least because these disputes frequently arise in arbitrations that remain unreported. When America sneezes, the world can sometimes catch a cold; insurers active in this sphere will be hoping that is not the result here... Background CAR policies typically insure all risks of loss and damage on construction or building projects, yet they commonly exclude, to varying extents, matters such as design faults or workmanship defects. The LEG defects clauses present three alternative exclusion formulations for CAR wordings. The broadest carve-out, and therefore the least cover, is LEG 1, which provides that the insurer 'shall not be liable for: Loss or Damage due to defects of material workmanship design plan or specification'. At the opposite end, LEG 3 contains the narrowest exclusion,...
This Practice Note centres on the assignment of collateral warranties (see Practice Note: What are collateral warranties?). For wider guidance on assignment generally, refer to Practice Notes: Assignment in construction contracts and Legal and equitable assignment in construction contracts. Although this Practice Note discusses collateral warranties, the same principles apply where third party rights are used instead; see Contracts (Rights of Third Parties) Act 1999 in construction—overview. Assignment provisions in collateral warranties The default position is that, if a contract says nothing about assignment, the benefit of that contract can be assigned without limit and without any need for consent, as allowed by section 136(1) of the Law of Property Act 1925 (LPA 1925); there is no requirement to obtain the obligor’s approval to any intended assignment. See Practice Note: Restrictions on the assignment of rights in construction contracts. In practice, most construction agreements include express assignment clauses to set out the parties’ respective rights on assignment, and this is usually mirrored in collateral warranties...
This Practice Note sets out targeted guidance on exclusions and caps on liability applicable to consultant appointments. It should be considered alongside Practice Note: Limiting liability in construction contracts, which contains fuller detail. Why consultants seek to limit their liability Professional consultants delivering design and/or other professional services on construction schemes will typically hold professional indemnity (PI) insurance to protect them if they are sued for breaching a professional duty. Most professional appointments usually oblige consultants to procure and keep PI insurance in place. PI insurance safeguards not only the consultant, but also the employer, by ensuring there is a defined pot of funds, albeit from insurers, available to satisfy any claim against the consultant. For further detail on PI insurance, see Practice Note: Professional indemnity insurance in construction projects. However, PI cover is costly, and the limits purchased by many consultants are unlikely to meet every potential claim, particularly on major projects...
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z ABI Model Form of Guarantee Bond A performance guarantee bond template issued by the Association of British Insurers (ABI) and commonly applied to construction projects, though it is frequently amended. See Practice Note: Amendments to ABI Model Form of Guarantee Bond. Acceleration In construction law, acceleration is generally taken to mean adopting measures to increase the pace of the works so as to complete them earlier than would otherwise be the case. See Practice Note: Acceleration of construction works, Precedent: Acceleration Agreement and Clause: Acceleration clause. ACE See the Association for Consultancy and Engineering (ACE) below. Activity schedule A schedule of activities the contractor anticipates carrying out in completing the works...