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An arm of construction company Laing O’Rourke has been found liable for £35mn worth of defects that have marred One Hyde Park, one of the UK’s most exclusive residential property schemes.
The High Court in London on Monday found in favour of residents who had sued Laing O’Rourke Construction South Limited over corrosion and other failures at the development in London’s Knightsbridge. Remedial works could take about a decade, according to the court judgment.
The building, a short walk from the Harrods department store, has drawn oligarchs, celebrities and other super-rich buyers since it was completed in 2011, with its properties setting records.
Ukrainian billionaire Rinat Akhmetov spent £136.6mn on a penthouse at the development in 2011, while Australian pop star Kylie Minogue has also owned a property there.
But the owners complained that the building had several problems and took Laing O’Rourke Construction South Limited to the High Court to cover remedial works.
On Monday, Mrs Justice Jefford said she accepted evidence from a claimant witness that remedial works to chilled water pipework would cost £34.4mn. The judge said she “will give judgment for the claimant in this amount”.
She also found Laing O’Rourke Construction South Limited liable for various other defects, taking the total to about £35mn. The company did not attend the proceedings and was not represented at the trial, according to the judgment.
Last February, the court was told that Laing O’Rourke was placing the subsidiary into liquidation.
The judge said Laing O’Rourke had “decided to pull the plug on the defendant rather than honour its contractual obligations” and agreed with the claimants that “such conduct [was] commercially amoral”.
Laing O’Rourke has been contacted for comment.
One Hyde Park Limited, an entity owned by the residents that in turn owns the freehold, said in a statement that the ruling was “a decisive victory” and that “the residents have indicated that they will continue to pursue all available legal and commercial avenues to recover their losses”.
“We are committed to ensuring Laing O’Rourke is held fully accountable and makes full and fair payment for the construction defects it has been found responsible for.”