QUEEN'S BENCH DIVISION
Rolls House 7 Rolls Building Fetter Lane London EC4A 1NL |
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B e f o r e :
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Christine Secker |
Claimant |
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(1) Fairhill Property Services Ltd (2) Simon Goulding (3) Sharon Goulding (4) Paul Prude |
Defendants |
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Julian Matthews (instructed by Kennedys Law LLP ) for the 2nd and 3rd Defendants
1st and 4th Defendants not represented
Hearing dates: 29-30 November, 1 December 2016
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Crown Copyright ©
Mr Justice Stuart-Smith:
Introduction
i) Leaving aside the effect of any exclusion clause, were there implied terms of the contract by which the claimant bought her home from the defendants relating to quality of workmanship and design?ii) If such terms would otherwise be implied, are they excluded by Clause 8 of the contract? This would involve consideration of whether Clause 8 is unfair so that the Defendants may not rely upon them by virtue of the Unfair Contract Terms Act 1977.
iii) Was there a collateral contract whose terms were that the Second Defendant would attend to snagging items identified post-completion in consideration for the Claimant entering into the contract to purchase the Property?
iv) If there were implied terms of the contract and/or a collateral contract as alleged by the claimant, were the Defendants in breach of contract because of the failure to attend to defective paving after completion and, if so, did that failure cause the Claimant's accident so as to give rise to a right to recover damages for the injuries she has suffered?
The Factual Background
Building the House
Buying the House
"It will be assumed that all necessary searches inspections surveys enquiries and the expert advice and guidance which a prudent buyer would consider necessary will be obtained by your client(s) or on their behalf
We are not prepared to answer any questions regarding the physical state and condition of the property or its services which are not appropriate enquiries under the Law Society's National Conveyancing Protocol. Instead, reliance should be placed upon the buyers own inspection and the advice of suitably qualified experts"
"You will appreciate that I do not inspect the property personally so it is very important that you re-inspect the property (if possible) in light of the information now being supplied. Please also ensure that the information is correct so far as you are aware."
"You are buying the Property in its actual state and condition. You must be satisfied about this from your own inspection of the Property and from your surveyor's report. If you expect the sellers to remedy (or pay for the remedy of) any defects, this will have to be agreed with them before contracts are exchanged and special conditions added to the contract. Your lender has asked us to point out to you that the valuation undertaken by their surveyor may not reveal defects in the Property."
"Exclusion
8. The Buyer hereby admits that he has inspected the Property and he enters into this Contract solely as a result of such inspection and upon the basis of the terms of this Contract and that in making this Contract no statement made by the Seller or his agent has induced him to enter into this Contract except written statements if any made by the Seller in replies to Sellers Property Information Forms (if any) or the Seller's Conveyancer in replies to enquiries raised by the Buyer's Conveyancer."
"I met with Simon Goulding a number of times at the property before I exchanged contracts. I had expected there to be some snags, as Mr Goulding had advised me that it was normal for there to be some snags in the case of new build properties and he had told me that he would come back to rectify any snags after I had moved in. We agreed this before contracts were exchanged. I did not however expect there to be the significant defects in the property that transpired."
"I had been told by [Mr Goulding] before my Mum exchanged contracts, that we should expect some snags, which is normal in the case of new build properties, and he had advised me before exchange of contracts that he would rectify any snags as and when they arose after we had moved in. However, I had not expected the significant defects which transpired to be present."
It is not alleged that a conversation with Harriet Secker gave rise to a collateral contract between Mr Goulding and Mrs Secker.
Q Now the property you knew that the property was to come with (and we've seen it referred to in your solicitor's correspondence) an NHBC Guarantee?
A Yes Yes I understood that.
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Q The main thing was that you knew it was under a guarantee, the property was guaranteed for 10 years - the quality of the work was that had been done. Is that right?
A Mr Goulding he commented on it.
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Q But you certainly understood that the guarantee was there and it was for your benefit.
A I did.
Q And you had a discussion with Mr Goulding about it because he told you there will be a guarantee on the property?
A Yes Yes
Q And did he explain to you that essentially because it was an NHBC Builder that meant he was obliged to put things right?
A Yes he did. That's exactly what he said.
Q So when we look at paragraph 8 of your witness statement … . In that paragraph you say you met with Mr Goulding another time before you exchanged and you say he was explaining that it was normal for there to be some snags he said he would rectify it - you don't mention NHBC guarantee there. Was that in the context of what we've just been discussing because he said he was bound to come back because under your guarantee I will come back to repair things?
A Yes oh yes definitely. He said that there are bound to be a few snags … and that they will be put right.
Q And you told us that he also made reference to NHBC but that was effectively your guarantee that it will be done?
A Yes
Q In terms of the guarantee what did you understand the purpose of that guarantee was?
A My understanding was that before contracts were exchanged the builder, in this case Mr Goulding … would give reassurance of any problems would be put right after we had moved in.
Q And what I am suggesting to you is what he was [saying] that because he was an NHBC builder that that meant he would have to put things right: if he didn't the NHBC guarantee was there to cover. Is that correct?
A To cover. Yes.
Q. Because you have had a conversation with Christine Secker to the effect that if there are any problems after she moved into the house you would come and sort them out
A. Correct.
Q. Having given her that assurance she later [bought] the property?
A. We had this conversation before she purchased the property – Yes.
After Moving In
"Hi simon. Hope you're well. Mum just asked me to find out if you could call round to organise the work that Paul carried out in the garden rectified. The slabs are very dangerous and loose and as you know the footings in the front garden need to be removed in order that our grass can grow"
Although he normally replied to Harriet Secker's texts, Mr Goulding had not done so by the time of the accident on 26 July 2012.
The Accident
The Claim Based on Collateral Contract
"[T]here was a collateral contract between the Claimant and the Second and Third Defendants whose terms and breaches were as follows.
PARTICULARS OF COLLATERAL CONTRACT CLAIM
(i) The Second and Third Defendants entered into a collateral contract with the Claimant, whereby in consideration for her agreement to buy the Property as above, the Second Defendant agreed that he would ensure that following completion, he would deal with and correct defects (or 'snags') which the Claimant identified after she had moved into the Property.
(ii) Following completion, as set out above, the Claimant did tell the Second Defendant about certain defects and asked him to correct them. Some of the defects identified were corrected in accordance with the terms of the collateral contract.
(iii) However, in breach of the collateral contract, the Second Defendant did not rectify other defects as the Claimant complained of as above.
Conclusion