Update on duty owed under The Defective Premises Act

A recent ruling from the Court of Appeal, in URS Corporation Ltd v BDW Trading Ltd, has confirmed designers owe a duty to developers under the Defective Premises Act (“DPA”).

Section 1(1)(a) of the DPA stipulates a duty is owed by a person taking on work or in connection to the dwelling if the dwelling is provided to the order of any person.

The designers in the Appeal rejected the amendment that developers were owed a duty under Section1(1). One of the arguments advanced by the designers was that the developer (BDW) had no claim under the DPA as the buildings were sold after completion and therefore, the developers suffered no loss. The Appeal was dismissed. The Court ruling has provided confirmation that developers are owed a duty by designers under the DPA.

This in turn provides developers with an option to seek recovery by their own claims against the designers if purchasers choose to sue the developers. The ruling also clarified that the recovery of damages, under the DPA, is not limited to property ownership.

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