HT-2022-000311 & HT-2022-000254 - [2024] EWHC 3179 (TCC)

RTM was incorporated for the purpose of acquiring the freehold pursuant to the Leasehold Reform Housing and Urban Development Act 1993.

RTM and the defendants entered into an Agreement for Sale, also referred to as the Freehold Purchase Agreement (“the FPA”), made on 26 February 2020 pursuant to which it was agreed that Click St Andrews would, within a period of not more than 2 years, develop the Property by removing the existing pitched roof and erecting an additional storey of three prefabricated modular units which would be lifted into place. In summary, the intention was that RTM would then purchase the freehold for £100,000 in its capacity as nominee for the participating leaseholders and simultaneously grant leases to Click St Andrews for the three new flats which would then be sold. Click Group Holdings guaranteed the obligations of Click St Andrews under the Agreement.

The claimants’ case is that the crane lift to install the modular units was scheduled to take place on 24 to 25 July 2021. Adverse weather warnings were issued by the Met Office between 19 and 25 July 2021. On 24 and 25 July there was repeated rainfall and thunderstorms across London and the South East of England. The pitched roof had been removed and the roof structure not kept watertight, which allowed water ingress throughout the building causing damage of varying severity in the flats. The defendants made some efforts to remedy the damage but the claimants’ case is that those efforts were inadequate, poorly managed and ultimately incomplete.

The claimants engaged experts to undertake their own investigations and that led to the identification of other alleged defects in workmanship in the modular units, including structural and fire safety issues. Recommendations were made for further investigations. At trial, the claimants adduced the evidence of:

A Dangerous Structure Notice was issued by Southwark Council on 9 February 2024 shortly before trial on which the claimants rely.

In the Particulars of Claim, the claimants’ claims were advanced on the following bases: