Supreme Court rules on transferred loss in Scottish construction contracts
What happened
The Supreme Court delivered a judgment in the Forthwell case involving Pontegadea. The ruling established that a broad right to recover "transferred loss" does not exist in Scotland. This decision has implications for the construction industry, emphasizing the need for careful contracting structures.
Why it matters
The decision affects the legal landscape of construction contracts in Scotland. It clarifies that parties can generally only recover their own losses, which may prevent claims from being frustrated due to 'black holes' in complex corporate contracts.
Who's involved
- supreme courtHighest court that delivered the judgment in the Forthwell case
- PontegadeaCompany involved in the Forthwell case
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- PontegadeaSpeculative
Pontegadea might face limitations in recovering transferred losses within Scottish construction contracts.
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The entities involved
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supreme court
highest court in a jurisdiction
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Pontegadea
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