2009-09-18

By Editor, CIR

Following the High Court's decision that Corby Borough Council was negligent in the remediation of the town's steelworks site, Tony Lennon, european manager at Chubb Environmental Solutions has warned of the wider implications for the construction industry.

"The high court's decision in the Corby case should act as a warning to developers, landowners, consultants and contractors. The case raises a number of issues regarding the remediation of land and the potential legal implications for all parties concerned in such a project.

The way in which sites are remediated is a potentially thorny area with regards to liability and compensation, he warns. In the case of Corby Borough Council, they were found liable many years after the project was finished and are facing huge costs for which they may not be adequately insured.

"The issue here is that traditionally, a contractor's public liability insurance would cover all parties, including the landowner, throughout the lifecycle of a project. However these policies will typically have a pollution restriction and will therefore only cover pollution damages if caused by a sudden unexpected and unintended event. In cases such as Corby, it is unlikely that the landowner would be covered by such a policy, leaving them vulnerable to the costs of litigation and damages," he adds.

Lennon believes that Corby will not be an exception and developers, landowners and contractors should become savvier in the way they protect themselves.

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