JLE court defeat may set LU claims soaring

by Carol Millett



Claims could soar on the Jubilee Line Extension following London Underground's recent defeat in the High Court against consultant Kenchington Ford. Last month, LU was ordered to pay around £6 million in costs and compensation to consultants Kenchington Ford, WSP and third party Harris and Sutherland.

Claims experts believe the case could encourage JLE contractors and consultants to raise the stakes in their claim negotiations with LU. Also, LU could become more cautious in pursuing its claims.

Claims consultant Chris Barlow of Sub-Contract Specialists said LU had lost credibility. "To have gone that far with such a dubious claim may indicate to contractors that LU is commercially weak in putting together and running a claim like that. It was certainly ill-advised to run it for as long as it did."

John Bolton, partner at City solicitor Davies Arnold Cooper said: "This will drive London Underground towards early settlement. Once you start fighting cases and losing, it is usual to look at the global claims settlement, which will include costs as well as settlements."

Stephen Haller, national head of construction at solicitor Dibb Lupton Alsop said: "The findings of delay caused by LU relate only to the particular facts of this case. However, no doubt other contractors who also allege delay caused by LU in fulfilling its side of the design development process will rely upon the finding in this case in their negotiations with LU," he said.

However a construction managing director argued that many firms may take a more pragmatic view. "Many of those firms that would normally have fought tooth and nail on claims against London Underground will hold back because of their interest in London Underground's forthcoming privatisation of the tube," he said.

A spokeswoman for the JLE said: "Every legal case is different and as such is treated on its own merits. No case ever sets a precedent."