Housing association awarded £10.8m in High Court cladding case

Housing association Hyde Group has reported that it has been awarded £10.8 million in damages and costs in the wake of its legal action over combustible cladding installed on five of its residential towers.

In Martlet Homes Ltd v Mulalley & Co Ltd [2022] EWHC 1813 (TCC), the High Court ruled that the housing association could recover its costs from the contractor for expenditures associated with the replacement of cladding on the towers. Martlet Homes Ltd is a subsidiary of Hyde Housing.

The judge also ruled that the contractor, Mulalley & Co, should pay the costs associated with a waking watch that the housing association provided as a fire safety precaution until the cladding could be removed.

The cladding was installed by Mulalley & Co on residential towers in Gosport between 2005 and 2008.

Following the Grenfell Tower fire, the housing association said it carried out investigations into the cladding on the towers, which found the design and use of the cladding systems installed by Mulalley were defective. It then immediately decided to replace the cladding on the towers.

Hyde Group claims it is the first housing association to win a court case against a contractor for installing defective cladding.

Andy Hulme, Chief Executive Officer at the Hyde Group, said: “This is a victory for all homeowners and justice for all those caught up in the cladding scandal, following the fire at Grenfell where 72 people tragically lost their lives. It sends a strong message to any others whose work is defective, that they cannot hide and must come forward to ensure homes are safe for people across the UK.”

Mulalley have been approached for comment.

Adam Carey

See also: The High Court’s approach to cladding claims - Judith Hopper and William Cursham analyse a recent ruling where a High Court judge awarded a housing association substantial damages in a claim relating to defective cladding.