Fenchurch Law Construction Risks

Construction Risks

Fenchurch Law Construction Risks
Case Study

Construction Risks

Advising a construction and engineering joint venture on the interpretation of a defect exclusion clause under a project CAR policy following the occurrence of damage during the construction of an underground pipeline.

The challenge

Our Construction Risks team advised a construction and engineering joint venture on the interpretation and effect of a LEG3 defect exclusion clause following the occurrence of damage during the construction of an underground pipeline. Whilst insurers initially made an interim payment under the policy, they subsequently argued that the effect of the exclusion was that our client was required to repay some or all of that payment and was not entitled to any further sums.

The solution

Insurers were unwilling to alter their position without the need for formal proceedings and therefore our clients commenced arbitration. On account of the arguments raised by insurers, the proceedings were complex and involved various aspects of expert evidence.

The result

Whilst the parties engaged in mediation during the arbitration process, settlement was not achieved in advance of the final hearing. Our clients were subsequently awarded a very significant sum by the Arbitrator who endorsed our clients’ interpretation of the policy.


Ayobami Babatunde

Ayobami Babatunde

Associate Solicitor

Tel: +44 (0) 20 3058 3090
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“I was attracted to Fenchurch Law because of the breadth of expertise it has across all lines of insurance for brokers and policyholders. I was also drawn to Fenchurch Law’s openness and approach to neurodiversity as I am dyslexic and dyspraxic. I believe it will ensure I work to the best of my ability and fulfil my potential.”

Ayobami is an associate solicitor specialising in coverage disputes and the newest member of the Fenchurch Law team.

Prior to joining Fenchurch Law, Ayobami trained at DAC Beachcroft, completing seats in Property Casualty, Professional & Financial Lines, Commercial Health and Real Estate. Ayobami graduated from the University of Nottingham, achieving a first-class degree, before achieving a distinction in his LPC at BPP University.