Presentations

As observed in the prior edition of Constructive Notes, “Judicial consideration of London Market Design (DE) Clauses”, commonly contract works policies utilised in major projects (whether written locally or by United Kingdom (UK) underwriters) are incorporating an exclusion from one of two sets of clauses derived from UK industry bodies. There had not until relatively recently been any reported judicial consideration of the operation of the other set of clauses (London Engineering Group (LEG) Defects Wording). A 2015 decision by the Court of Appeal for British Columbia provided the first considered judicial analysis of the operation of an LEG 2/96 Defects Exclusion, notwithstanding a large question mark over the status of the decision. More recently, US courts have handed down judgments in two cases which provided the first judicial consideration of the LEG 3 Exclusion. These cases are analysed in this newsletter by Partner Patrick Mead along with their likely impact in Australia.