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JCT Construction contracts and the question of joint names or composite construction insurance

Posted on: August 21st, 2024 by Hugh Dineen-Lees

Construction projects are necessarily complex risk structures in themselves, relating to a mix of workmanship, design and the particulars of the construction process. Parties to a construction project will often extend beyond those commissioning the work (the employer) and carrying it out (the contractor). It is often more likely that the parties will include architects, engineers, project managers, numerous subcontractors and suppliers and – via collateral warranties – future purchasers, tenants and funders. All of these actors can contribute to loss or damage and, ultimately, legal liabilities.

This contractual complexity requires construction insurance arrangements which match the risks facing each party and the nature of their interest in the project. It is sensible therefore to obtain insurance advice to ensure the correct policy terms – joint names or composite insured – are in place before works begin.

What is joint names construction insurance?

Joint names is an insurance policy extension that covers the contractual responsibilities of both the employer and the contractor. It applies to new build and refurbishment contracts where there is a requirement to name parties on a construction insurance policy that will cover the contract works and any existing structure as under the standard terms JCT suite of contracts.

A joint names extension has the following likely characteristics:

  • removes the need for each party to take out separate policies covering their own responsibilities and therefore eliminate the risk/cost of duplicated insurance arrangements;
  • ensures that the named parties – e.g., employer and contractor – cannot claim against one another; and
  • makes it impossible for one party to cancel the policy without notifying one or all of the other named parties.

Joint names works when the contracted parties’ interests are aligned – as are those of the employer and contractor who are both going to be looking for the works to be completed on time, on budget and to the agreed contractual standard.

What is composite insured construction insurance?

Composite insured is different and is often applied where the project parties have a separate and individual interest in the works. The most obvious example is that of a funder’s interest in a construction project which, unlike the employer or contractor, has as its primary interest the return of its loan facility and interest. This may or may not be separate from the successful completion of the works.

A composite insured extension is generally written on a bespoke basis to reflect the different interests of the various project parties so as to protect their individual interests – this can be achieved by the inclusion for instance of first loss payee provisions which generally seek to cover the original loan plus interest.

This risk cover is obviously different to one based on a joint names extension which just notes a funder’s interest in a project.

In brief: the difference between joint named and composite insured

  • Both joint names and composite insured are insurance policy extensions applicable under JCT contracts standard terms.
  • Joint names extensions are most commonly applicable where the insured parties have similar undivided interests in the project.
  • Composite insured extensions are more applicable where one or more parties have their own interests, separate from the other parties.

The insurance market is a market, which changes on a daily basis as to what risks it will accept, on what terms and at what cost.

Construction professionals – including lawyers, contractors, funders and others need to work together as closely and openly as possible with brokers and underwriters in order to find the best risk cover solution for a project. The preparation and analysis of risks will lead to the actual insurance contract terms – almost certainly by way of addendum or changes to the standard terms, This is where the assistance of lawyers will most likely be needed.

If you would like further information on construction contracts and the types of insurance that can be used to cover them, please contact a member of our Construction team.

Transparency within family law proceedings has been a recent subject of debate, and East London Family Court recently provided clarity on this topic

Posted on: August 19th, 2024 by Hugh Dineen-Lees

In June 2024, HHJ Reardon sitting in the East London Family Court handed down her judgement in the case of G v S (Family Law Act 1996: Publicity) [2024] EWFC 231 (B), an interesting case concerning confidentiality in private family court proceedings.

Eleanor Wood of Lawrence Stephens acted on behalf of the respondent, instructing Maria Gallagher of Pump Court Chambers.

Prior to the final hearing, the applicant and respondent entered into Family Law Act proceedings in which no findings were made by the Court. The applicant’s position in this case was that he should be able to speak publicly, and in his own name about these proceedings and the evidence filed by each party. The applicant argued that family court proceedings, whilst heard in private, are not subject to any restriction in respect of publication and he is therefore free to speak publicly. It was also contended that should this be wrong, the restriction should be relaxed in this case because he wished to be involved in a documentary about domestic abuse and honour-based violence, which would increase public awareness and understating of this issue.

The respondent argued that there is an implied undertaking of confidentiality within family proceedings and further that her Article 8 rights to privacy outweighed the applicant’s Article 10 rights to freedom of speech and the wider public interest in publication.

In reaching a decision, HHJ Reardon concluded at paragraph 44 of her judgement “that the starting point is one of confidentiality”, and that the applicant would need to “seek the permission of the court to publish information about the proceedings.” Ultimately, she held that no findings had been made in Family Law Act proceedings, and that the respondent’s Article 8 rights did outweigh the applicant’s Article 10 rights, noting that it would be very difficult to ensure real anonymity. The applicant’s application was dismissed.

Eleanor Wood, Co-Head of Family at Lawrence Stephens and solicitor for the husband, commented:

“We are pleased to have secured a successful outcome for our client in a complex case which presented several issues which needed to be considered and dealt with at various stages. This highlights the importance of a well-prepared case to identify how the assets were used and where they originated when determining how they should be divided upon separation. The outcome is a fair one. It reflects the needs of the wife in conjunction with how the assets were used or matrimonialised, and that it is not always a simple sharing principle being applied.”

The full judgment can be read here.

Mohit Pasricha has been recognised as one of just 30 Leaders Under 40 Class of 2024 in the Leaders Sports Awards

Posted on: August 15th, 2024 by Hugh Dineen-Lees

We are delighted to share that Director and Head of Sports and Entertainment Mohit Pasricha has been recognised as one of just 30 Leaders Under 40 Class of 2024 in the Leaders in Sport awards.

Leaders in Sport serves to connect the most influential people and the most powerful ideas in global sport to drive the industry forward. Sponsored by Deloitte and now in their tenth year, the awards acknowledge exceptional individuals who have moved the sports industry forward in the last 12 months. Mohit was selected by an esteemed panel of over 70 judges in a highly competitive category with hundreds of nominations of an exceptional standard.

Mohit joins a high profile international cohort representing governments, regulators, clubs and major sports brands. He will receive his award at the awards ceremony to be held at BAFTA on Piccadilly on Tuesday 15 October. The event forms part of a series that comprise Leaders Week London, a gathering of the entire ecosystem of global sport to foster understanding of the global trends impacting the sport business landscape and how to commercialise them.

Click here to view the Class of 2024 in full.

Lawrence Stephens completes the sale of Brampton Dental Practice to L&P Ltd

Posted on: August 13th, 2024 by Hugh Dineen-Lees

Lawrence Stephens’ Corporate team recently completed the sale of the entire share capital of Brampton Practice Limited to L&P Ltd in July 2024.

The team was led by Director and Head of Corporate and Commercial, Jeff Rubenstein with support from Solicitor, Isobel Moran and Director, Nick Marshall from the Commercial Real Estate team as well as Trainee Solicitor, Heather Ramsey.

Jeff, Director at Lawrence Stephens: “The successful conclusion of this deal reflects our team’s expertise and commitment to facilitating strategic business transitions within the dental sector. We are delighted to have supported Brampton Practice through this process and wish Mark all the best in his future plans.”

Mark Moran, Former Director of Brampton Dental Practice Limited commented: “I am deeply appreciative of the professionalism and support provided by the entire team at  Lawrence Stephens. This sale not only signifies a personal milestone for me  but also ensures the legacy of Brampton Dental Practice continues under new ownership.”

We congratulate all involved in this successful sale and look forward to the practice’s future under the guidance of L&P Ltd.

If you are a Dental practitioner thinking of selling your business please reach out to our team who have significant expertise in this sector and can guide you through this process.

Emma Cocker discusses menstruation in the workplace in People Management

Posted on: August 12th, 2024 by Hugh Dineen-Lees

Emma Cocker, Senior Associate in the Employment team, explores how employers can best support staff who are menstruating or experiencing the menopause in People Management.

Emma’s article was published in People Management, 9 August 2024, and can be found here.

There are around 15 million people of menstruating age in the UK, with roughly the same number ‘in work’. It is likely that a significant proportion of those 15 million people will either be menstruating or in menopause. Given these figures, you might think menstruation would be a hot topic in the workplace. However, the evidence suggests otherwise, with only 12 per cent of organisations providing support for menstruation and menstrual health.  

A recent study by Heriot-Watt University revealed that individuals who menstruate are still facing significant challenges at work, including poor access to toilets and washing facilities, pain and mental health symptoms, and the need to conceal menstrual blood due to stigma. This study focused on the experiences of menstruating people working in research and innovation roles, but the findings are equally applicable to all work environments. 

It is estimated that up to one in three people who menstruate will experience abnormal menstruation at some point in their reproductive lives, most commonly when starting their periods and before menopause. Menstruation and menopause, therefore, are a significant health and wellbeing concern for employers.

The importance of creating a positive and open environment around menstruation cannot be overstated and employers should prioritise educating line managers, regardless of their sex. It is often felt that people who do not menstruate have no understanding of the all-encompassing physical and mental effects of menstruation beyond age-old stereotypes around premenstrual tension. If employees know that all line managers have received appropriate training, they are likely to feel more comfortable about raising concerns with their employer. This will lead to increased confidence and higher productivity and staff retention rates, with a lower chance of stress, anxiety and depression. 

Although not specifically a part of this study, menopause is another issue facing people who menstruate. Menopause is thought of as the simple ceasing of menstruation, however this does not account for perimenopause – the often prolonged and challenging build-up to menopause. Perimenopause can manifest itself in a multitude of physical and mental health symptoms such as unpredictable changes in body temperature (hot flushes), extremely heavy menstrual bleeding (flooding), and problems with memory or concentration (brain fog). In extreme cases, perimenopause may even push individuals to stop working altogether.

Ensuring access to appropriate toilet and washing facilities is also important and employers may also wish to provide hygiene products in all toilet spaces; as well as the practical benefits, this helps to reduce the taboo around menstruation.  

Making provisions for regular comfort breaks is also vital in occupations such as caring and hospitality, where it may be more difficult to take breaks exactly when or as often as needed. In workplaces such as schools, a buddy system can be helpful to ensure that staff can access facilities quickly without having to worry about arranging cover while they are away from the classroom. 

Employers should also consult with staff on uniform requirements. While a light-coloured uniform may be considered visually appealing, it may cause anxiety for those who menstruate because of the fear of leaking or unexpected bleeding. 

Also, a lack of workplace policies could be costing businesses over £6bn per year due to lower productivity. Policies including enhanced sick pay or flexible working could improve such issues and employers should also consider reviewing other relevant policies such as well-being, EDI and performance management to consider menstruation and menopause. This will also help to ensure employers are compliant with the relevant provisions of the Equality Act 2010.

Residential Real Estate market update: navigating the current UK housing market

Posted on: August 9th, 2024 by Yvonne Uzoka

The Bank of England (the ‘BoE’) Monetary Policy Committee’s recent decision to cut interest rates to 5% and the anticipated government taxation regime announcement in October 2024 are likely to affect both the wider UK housing and Prime Central London (‘PCL’) markets. In this market update our Residential Real Estate team take a look at the possible effects.

Impact on Swap Rates and the UK housing market

Let’s dive in. The UK housing market continues to show robust price growth. Earlier analysts’ predictions of an expected 1.8% rise in housing prices in July 2024, prices have been surpassed by actual increases of 2.1%. This unexpected growth reflects strong pent-up demand as borrowing conditions improve. In anticipation of the BoE’s interest rate cuts, several mortgage lenders, such as HSBC, NatWest and Nationwide, have recently reduced their mortgage rates boosting approvals to around 60,000 per month.

Following the BoE’s decision, five-year swap rates fell to 3.6%, the lowest since February 2024. This is under the crucial 4% threshold and experts are predicting rates will stabilise around 3.25% above pre-pandemic levels.

Why does this matter? The current trends suggest that lenders expect long-term interest rate reductions, making 5 to 10 year fixed mortgages the most cost-effective options. This indicates that lenders are keen to secure borrowers at these lower rates, which are predicted to drop over the next few years – a positive signal for the housing market.

Overall, there is cautious optimism. While house prices are rising steadily, borrowing conditions are improving and no dramatic drops in rates are expected.

The contrasting trends in PCL: signs of recovery?

In the wake of 20+ months of economic fluctuations and high interest rates, the UK property market has shown a mix of different trends. In the broader market Q2 of 2024 saw a 22% increase over the previous quarter for properties valued between £3-15 million. However, during the same time period, PCL prices were falling, with valuations dipping slightly. The trend of increasing average discounts has continued for the seventh consecutive month after three years of declines. This suggests that PCL may be influenced by other factors and the recent interest rate reductions may have a limited effect.

Despite the ratio of available stock to monthly sales at 25:3 in Q1,2024 to 22:6 in Q2, 2024, supply remains high, with an above long-term average of 20. Consequently, sellers must maintain realistic expectations regarding property prices, especially as the market broadens and buyers are presented with more options.

Key takeaway:

  • Demand is rising, but price drops in PCL are likely to continue as supply remains high.

The Government’s taxation updates and potential impacts

Lastly, we address the central government’s upcoming taxation regime, due to be announced in October, and its potential impact on the housing market. The Labour Government’s mandate is pro-growth, with an expectation of coming into effect by 6 April 2025. However, the practical implementation remains uncertain.

They aim to boost public service investment and stimulate the economy without raising income tax, national insurance, or corporation tax, which constitute about 80% of tax revenue. Proposed changes include:

  • Taxation of non-UK domiciled individuals – individuals with 10 consecutive years of non-residence will be exempt on their foreign income and gains received in the first 4 years of residence in the UK. It is irrelevant whether the income and gains are remitted to the UK;
  • Introduction of VAT on private school fees;
  • Abolition of furnished holiday lets (FHL) regime;
  • Adjustments to taxation on carried interest; and
  • Changes to transfer of assets abroad.

It is unclear if the government can achieve growth with these mechanisms or if they will backtrack on promises. As such, borrowers, lenders, and property owners should stay vigilant in the coming months.

At Lawrence Stephens we are dedicated to helping our clients navigate these changes. If you have any questions or need assistance, please do not hesitate to contact our specialised Residential Real Estate team.

Joanne Leach comments on minimum service levels and industrial action in City A.M.

Posted on: August 8th, 2024 by Natasha Cox

Joanne Leach, Senior Associate in the Employment team, comments on the news that the UK government will repeal controversial laws enforcing minimum service levels during industrial action, in City A.M.

Joanne’s comments were published in City A.M., 7 August 2024, and can be found here.

“With the proposed plans to ignore minimum services levels legislation, the government can secure an easy early win in terms of following through on the employment commitments of their election manifesto.

“Repealing this controversial and ineffective legislation, which had already been subject to challenge via judicial review, will take up minimal legislative time in contrast to the scrutiny that will inevitably be required of the implementation of the rest of its New Deal for Working People. A direction to ignore its provisions in advance of that repeal will effect an even more immediate impact – the strengthening of the fundamental right of any worker to withdraw their services to protect their contractual terms.”

If you would like further advice on these legislative changes and the impact they may have on you, please contact a member of the Employment team.

Joanne Leach comments on anti-bullying policies in People Management

Posted on: August 6th, 2024 by Natasha Cox

Joanne Leach, Senior Associate in the Employment team, comments on a recent study which found that more than half of UK employees do not think that shouting at work counts as bullying and discusses how employers can address workplace bullying.

Joanne’s comments were published in People Management, 5 August 2024, and can be found here.

“Adopting an anti-bullying and anti-harassment policy is merely the first step an employer must take towards addressing workplace bullying. To ensure it is effective, employers must also train the whole workforce on what is required of them regarding their interaction with colleagues.

“What constitutes ‘acceptable conduct’ has shifted significantly in recent years, and behaviour that used to be tolerated can now lead to significant liabilities for an individual and their employer.

“When an incident of bullying occurs, employers are more likely to minimise liability with clear grievance and whistleblowing policies in place which employees can access and managers can understand.

“Policies that address workplace culture, such as a clear diversity, equity and inclusion policy and training on unconscious bias and allyship, also empower employees to support their colleagues and call out wrongdoing if they witness unacceptable conduct.”

If you would like any assistance in developing whistleblowing, workplace culture or diversity, equality and inclusion policies, please contact a member of our Employment team.

Lawrence Stephens announces new partnership with MB Motorsport

Posted on: August 6th, 2024 by Natasha Cox

Lawrence Stephens is pleased to announce its latest partnership with Laser Tools Racing and MB Motorsport. Founded and led by former Formula One driver Mark Blundell, Laser Tools Racing with MB Motorsport take to the track with Jake Hill in the 2024 Kwik Fit British Touring Car Championship backed by MBP, the relationship-driven sports marketing agency.

Both companies focus on building partnerships to drive new success for their clients. As such, they are an ideal fit for Lawrence Stephens, who’s guiding ethos is the provision of legal advice with a personal touch. We look forward to helping MB Motorsports’ ambitious clients continue building on their success.

Mohit Pasricha, Head of Sports and Entertainment at Lawrence Stephens, commented:

“Having had a relationship with Mark and MBP for many years we are thrilled to formally be partnering with a team at the top of British Touring Cars. Both the Sports and Entertainment team and the wider Lawrence Stephens firm are excited to share our expertise with the team, its partners and contacts. This announcement further demonstrates our commitment to motorsport and will serve to enhance our offering to our talent, agency and brand clients in the sector. We are excited to be welcomed by the team and to build a long-term partnership”.

Mark Blundell, Sporting Director of Laser Tools Racing with MB Motorsport, added:

“It is brilliant to welcome another industry leader in Lawrence Stephens to the Laser Tools Racing with MB Motorsport roster for the 2024 season. As ambitious as we are on track, they are firmly behind supporting their clients to be equally as ambitious off the track and I am looking forward to welcoming them to the team.”

To find out more about this partnership, please contact Mohit Pasricha or William Bowyer.

Insights from Matt Green and industry experts on achieving trust and security in Caribbean Web3 and Crypto

Posted on: August 5th, 2024 by Hugh Dineen-Lees

Matt Green, Head of Blockchain and Digital Assets and Head of Technology Disputes, recently featured on a panel at the Blockchain Lex Group x CryptoMondays Caribbean webinar: Achieving Trust and Security in Caribbean Web3 and Crypto.

Matt discussed whether crypto exchanges owe a duty of care to help victims of fraud. He argued that a formal common law duty will unlikely assist; those that are cooperative will continue in any event, and those which do not comply with Court Orders are already in contempt of Court and further duties may push them deeper into the shadows.

Matt argued that there should be (i) a reliance on implementing helpful technology like transaction monitoring, especially considering that key stakeholders have this technology, drawing parallels with the banking industry, and (ii)that a general consensus on best practices will promote the good actors allow them to follow pre-agreed protocols to assist victims of fraud.

Matt was joined by Keir Finlow-Bates, author and inventor at Chainfrog, Keniel Ledgister, the Caribbean Region Attaché at the Internal Revenue Service, Racheal Muldoon, Barrister at Maitland Chambers, Erika Knierim, Senior Associate at Founders Law LLC, Marina Markezic from the European Crypto Initiative, and Adella Toulon-Foerster, Partner at Hodder Law.

The full webinar can be viewed below.

Lawrence Stephens announces five Director promotions

Posted on: August 1st, 2024 by Natasha Cox

Lawrence Stephens is delighted to announce the promotion to Director of five exceptional colleagues who have consistently demonstrated a drive for excellence and dedication in delivering the best outcomes for their clients at all times.

Rachel Coulthard from our Real Estate Finance and Banking team, acts for borrowers and lenders across bridging finance, development finance, secured lending and high-value refinances of property and property portfolios.

From our Corporate and Commercial team, Katherine Zangana has over a decade of experience acting for small and medium-sized businesses, specialising in acquisitions, restructuring and other corporate transactions, as well as commercial contract matters.

Having previously worked in the firm’s Dispute Litigation team, Abtin Yeganeh becomes Director in our new Property Litigation department, advising clients in relation to all aspects of real estate disputes – including secured recoveries, trespass, professional negligence, and landlord tenant matters

Having led the firm’s Family department since November 2023, Jim Richards and Eleanor Wood are both highly experienced solicitors with significant experience acting for a wide range of clients including high-net-worth and high-profile individuals, foreign nationals, non-domiciles, UK nationals living abroad, and multinational families.

Steven Bernstein, Managing Director at Lawrence Stephens, commented: 

“With these five Director promotions, and the launch of a new department for the firm, we are proud to be continuing to demonstrate Lawrence Stephens’ growth and cross-departmental expertise. Rachel, Katherine, Abtin, Ellie and Jim’s cross-sector practices reflect the full-service approach we take at Lawrence Stephens, and how we are able to deliver the best outcomes for our clients.”

Matt Green comments on the multi-billion pound class action over the delisting of the BSV cryptocurrency, in CDR Magazine

Posted on: July 31st, 2024 by Yvonne Uzoka

Director and Head of Blockchain and Digital Assets, Matt Green, comments on the news that the UK Competition Appeal Tribunal has agreed to certify a claim for investors to sue four crypto exchanges over their decision to delist the Bitcoin Satoshi Vision (BSV) cryptocurrency.

Matt commented: “This case lends itself to a wider narrative with two main camps: those who believe in BSV as Satoshi’s true vision for Bitcoin and those who do not.

“The claimant class may seek to justify both price and broader adoption issues on market manipulation and competition interference, in the form of delisting, by those who want to suffocate BSV. Whether there is a right to claim concerted market manipulation or whether this is simply private companies delisting a token to match market demand is likely to be a vital matter in this dispute.”

Matt’s comments were published in CDR Magazine, 31 July 2024.