L&G is suing a contractor, architect and structural engineer over alleged defects at an office block in Aberdeen city centre.
The seven-story Union Plaza building, currently leased to several companies, among them Deloitteit was built by Stewart Milne Group and completed in 2008. It was owned by a Stewart Milne Group company before being sold to Legal & General Assurance (Pension Management) in 2013.
L&G has launched a claim for fire safety, structural and water ingress issues.
The claim alleges that when L&G bought the building it was told that water had previously been seeping into the basements due to defects in the podium tank and retaining walls, and that those problems had been fixed.
After complaints that the ingress continued, in May 2018 Stewart Milne carried out repair work on his own, but L&G say this has not resolved the problem.
While work was being carried out to repair the defects in the podium, it was discovered that the protective paint was bubbling away and the steel beams showed signs of rust and corrosion, according to the claim.
L&G says it has discovered that the problems with the paint in the basements were not only caused by water ingress, but also by defects in the design and application of a protective paint system.
He argues that Stewart Milne, as well as architect Halliday Fraser Munro and structural engineer Fairhurst, are responsible for the discovered problems with the basements. He cited them in December 2018.
It is also taking legal action against Stewart Milne and Halliday Fraser Munro over the insulation which it says is poorly installed and risks exposing steel beams in the event of a fire. These alleged soffit defects were identified in an inspection in the summer of 2020, with a citation issued the following year.
Other “fire protection defects” were also allegedly identified, according to a legal opinion that did not specify what they were.
L&G is seeking to recover £20m to cover the cost of investigating and repairing fire safety defects and a further £350,000 for the basement problems.
The contractor, architect and structural engineer failed in an attempt to stop the claim, which was allowed to proceed by Mr Justice Lord Harrower in two recent rulings in the Outer House, Court of Session, which were based on the relationship between the collateral guarantees and the initial construction contract.
He said it must be argued whether there was a misrepresentation in 2013 about the building’s condition and defects.
A spokesman for the group, Stewart Milne, said Construction news that he had been successful in challenging some of the legal points raised by L&G, and acknowledged that the case would continue with evidence to be heard at a future hearing.
L&G declined an opportunity to comment, including which security currently occupies the allegedly defective building.
The case continues.
