Architect fails in Taywood case

Architect Watkins Gray has failed in a bid to bring contractor Taylor Woodrow into a damages claim following a dispute over a major development scheme at Royal Brompton Hospital, London, between 1987 and 1990.

This week the Appeal Court upheld a High Court ruling in July 1999 in which Watkins' move to join Taywood as a third party was struck out.

Taywood had sued the hospital for £22m in extra payments and loss and expense for variations, delay, disruption and other matters arising out of the contract.

The hospital paid £5.2m. Subsequently, arbitration proceedings were settled with the hospital paying Taywood £6.2m after taking into account a counter claim.

A term of the settlement was that the hospital would indemnify Taywood against any claim from compensation made against it by Watkins.

The hospital then launched action against Watkins, among others, alleging breach of duty and care by awarding extensions of time to Taywood. And at that point Watkins joined Taywood as third parties claiming a contribution from the contractor if it was eventually found liable.

Last year the High Court ordered that the third-party notice should be struck out and the claim against Taywood should be dismissed.

This week that decision was upheld by Lords Justices Stuart-Smith, Ward and Buxton. Buxton said it was plain that Taywood was not liable to the hospital and that, in the interests of economy of litigation, Watkins was not entitled to recoup payment from the contractor.