Ardmore to appeal landmark £15m Building Safety Act ruling

The ruling in Crest Nicholson v Ardmore marks a serious escalation in how the Constructing Security Act 2022 can be utilized to pursue liabilities throughout company buildings, with the court docket making clear that group corporations could be pressured to face behind historic defects.

With Ardmore getting ready an attraction, the case is now set to turn into a defining take a look at of how far the Constructing Security Act can attain into contractor group buildings and who finally pays for legacy defects.

The dispute centres on Portsmouth’s Admiralty Quarter growth, a 21-storey residential tower and different a number of residential buildings delivered between 2007 and 2009.

Crest alleges widespread hearth security failures together with flamable insulation, lacking cavity obstacles and faulty hearth stopping.

An adjudicator dominated in August 2025 that Ardmore Building had breached its duties below the Faulty Premises Act and ordered it to pay £14.9m. The contractor entered administration the day earlier than the choice was issued and has not paid.

Crest then turned to the Constructing Security Act to pursue related corporations throughout the Ardmore group, arguing the broader enterprise ought to stand behind the liabilities.

Within the ensuing court docket case, Justice Constable granted Crest Nicholson two highly effective orders — an “anticipatory” Constructing Legal responsibility Order (BLO) overlaying any future legal responsibility at trial and a second BLO implementing a £14.9m adjudication award linked to fireside security defects on the Portsmouth scheme.

Crucially, the choose confirmed that adjudication choices can quantity to a “related legal responsibility” below the Act, opening the door for builders to pursue fee throughout group corporations with out ready for a full trial.

Ardmore confirmed it is going to problem the choice.

A spokesperson for the contractor stated: “We’re disillusioned by the Court docket’s resolution in relation to Admiralty Quarter, a undertaking delivered nearly 20 years in the past.

“We don’t contemplate that the laws was supposed to use on this method, and we intend to attraction the judgment.

“This isn’t an remoted challenge. It has profound implications for the broader development sector, and we all know {that a} vital variety of different contractors are dealing with comparable claims and can seemingly be intently monitoring how this case develops.

“As proceedings are ongoing, it could not be applicable to remark additional at this stage.”

The court docket discovered it was “simply and equitable” to increase legal responsibility throughout the Ardmore group, pointing to the insolvency of Ardmore Building Restricted, the group’s restructuring to isolate liabilities, frequent possession and management, and proof of great hearth security defects.

Makes an attempt to argue the transfer was untimely failed, with the choose ruling the court docket may act forward of trial the place legal responsibility was extremely seemingly.

He additionally rejected claims that adjudication awards have been too momentary to assist a BLO, confirming they create a binding legal responsibility except overturned.

The judgment sends a sign that insolvency and company restructuring won’t defend contractor teams from historic constructing security claims, with legal responsibility now able to monitoring throughout related corporations below BLO powers.

Mark Lennon, development accomplice at Gateley Authorized, which acted for Crest Nicolson, stated: “This landmark resolution has far-reaching implications for the development business.

“It considerably strengthens the flexibility of builders and constructing homeowners to get better remediation prices and reinforces the precept that these liable for constructing security dangers will finally be held to account throughout group buildings.

“Contractors, builders, funders and insurers might want to take a a lot nearer take a look at group large publicity to BLOs at an early stage, significantly the place adjudication, insolvency or restructuring is in play.

“The judgment sends a transparent message that the courts will use the complete breadth of the Constructing Security Act to make sure that legal responsibility for critical defects rests the place it correctly belongs.”