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John F Hunt Demolition Ltd v ASME Engineering Ltd

Unreported 2007-07-05

The judgment in this case covered two interesting points:
1.A claimant who settles with a third party to whom he had no liability in law can in principle recover the amount of that settlement from a defendant, provided that the settlement was reasonable on the facts.  But if the amount of the settlement exceeded what was reasonable and was therefore an unreasonable settlement, the claimant cannot recover some lesser amount which would have represented a reasonable settlement: he recovers nothing.
2.  The combined effect of the insurance provisions in the JCT 1998 Contract with Contractor's Design and the DOM/2 Contract is that a sub-contractor owes an employer no duty of care in relation to fire damage negligently caused to the existing structures