Hodgson v National House Building Council

Facts

Mr Hodgson and his former wife owned a bungalow in Northamptonshire built in around 2002 by PA Groves Ltd and covered by an NHBC Buildmark policy. In September 2004 he began an arbitration against Groves under the policy, claiming £965,991 across a Scott Schedule of 152 items. The arbitrator's First Partial Award of 19 January 2007 awarded him £153,598, most of which the NHBC paid when Groves failed to do so. Mr Hodgson then began a second arbitration under the JCT contract. As Groves headed towards insolvency, and after it was wound up in April 2010, the parties reached a Settlement Agreement, evidenced by letters of 10 March and 21 June 2010, under which Mr Hodgson discontinued the JCT arbitration and submitted further claims to the NHBC, to be determined under Section 2 of the policy as if the builder were insolvent. The NHBC rejected those claims in September 2011, chiefly because it said they had already been determined in the arbitration. Mr Hodgson sold the property at auction in February 2013 for £650,000 without carrying out any remedial works. In September 2017 he issued these proceedings in the Technology and Construction Court claiming £362,265 as a debt or as damages for breach of the Settlement Agreement. In November 2017 the NHBC applied for summary judgment and/or to strike out the whole or part of the claim.