Weightmans – Building Guarantees: Continuing risks to residents following Manchikalapati v Zurich Insurance

• FOIL
• FOIL Ireland
• FOIL select
• London FOIL

Author - Chris Doran

In the recent decision of the court of Appeal in Manchikalapati v Zurich [2019] EWCA Civ 2163, the court considered the interpretation of a Building Guarantee, the circumstances in which cover arose and how the maximum liability cap operated. Whilst some commentators have welcomed the decision for reinforcing the rules on how contracts are to be interpreted, these principles are already well settled. The application of these principles on the facts of this case have also been welcomed. However, the decision is not without difficulty and further guidance from the Supreme Court would be welcome.