Newbury firm wins appeal over Iliffe compensation payout

Defence of construction company over fire liability not fully heard, say judges

A NEWBURY construction company has been successful in its appeal against a High Court ruling ordering it to pay a seven-figure compensation bill to the Hon Edward Iliffe.

Feltham Construction Ltd, based in London Road, had been hired by Mr Iliffe to build a six-bedroomed family retreat on his island off the coast of Dorset.

However, the property on Green Island in Poole harbour was destroyed by a fire as construction neared completion in 2012.

Mr Iliffe, 46, and his wife, Teleri, who live in Yattendon, sued the builders and, at a hearing last July, a High Court judge ruled that Feltham was liable and ordered the firm to pay £3m in damages to the couple.

However, Feltham denied any contractual responsibility for the blaze and now Mr and Mrs Iliffe have been put back to square one by three Appeal Court judges after they ruled that the company was entitled to have its defence fully heard.

The Iliffes’ experts said the fire broke out in the roof void and resulted from the faulty installation of a log burner or flue.

However, Feltham disputes the cause of the fire, and says the installation work was the responsibility of a sub-contractor.

At a hearing last week, Lord Justice Jackson observed: “We still do not know what actually caused the fire... also there has been no judicial investigation of the facts.”

He ruled that judgment had wrongly been entered in the Iliffe’s favour on the basis that Feltham had no arguable defence to their claim.

The judge, sitting with Lords Justice Tomlinson and Floyd, said the couple still had good prospects of ultimately winning compensation for their loss.

However, the project involved not just Feltham, but a complex web of specialist and other sub-sub contractors.

The court’s decision means that the couple will have to fight their corner again at a full High Court hearing, which will involve no less than six parties.

The solar-panelled home was in the final phase of construction when the fire took hold in April 2012.

The log burner had been in use for two weeks when an electrical contractor reported hearing “funny cracking noises”.

Although 45 firefighters were ferried to the island, pumping seawater in a bid to douse the flames, the house was largely destroyed.