Asbestos dispute results in significant victory for construction professional, overturning initial court order of interdiction

In a landmark ruling, the Court of Session has ordered housebuilder Springfield Properties to pay a substantial sum of over £558,000 in damages to Martin McGowan, a Lanarkshire businessman.

The damages are a result of a wrongful interdict obtained by Springfield Properties against Mr McGowan in 2016. The interdict, which was later recalled after Springfield's guilt was established, caused him lasting financial and personal harm.

Martin McGowan, who represents the interests of the claimant in the case against Springfield Properties, instructed by Horwich Farrelly Solicitors, claimed damages for distress and anxiety, reputational harm, loss of earnings, and loss of employability.

The heftiest element of the award related to loss of earnings, with damages assessed at £463,033. Lady Haldane, the judge presiding over the case, also awarded £25,000 for Mr McGowan's distress and anxiety, and £20,000 for reputational harm.

The case arose from a long-standing business relationship between Mr McGowan and Springfield Properties. For most of his working life, Mr McGowan had supplied groundworks teams to Springfield Properties. However, the relationship collapsed due to allegations of asbestos contamination at Springfield sites.

In October 2020, Springfield Properties pleaded guilty to health and safety offences relating to asbestos exposure and was fined. Lady Haldane was critical of Springfield's inaction after its guilty plea, stating that the company should have taken immediate steps to address the issue and rectify the harm caused to Mr McGowan.

Springfield argued that the claim was time-barred and that the absolvitor decree did not prove wrongdoing. However, these contentions were rejected by the Inner House in August 2024.

Lady Haldane's opinion included testimony from Mr McGowan's wife and son about the family being torn apart. The family's testimony underscored the personal and emotional toll the wrongful interdict took on them.

Springfield also argued that the York contract, which Mr McGowan's forensic accountancy expert calculated potential lost profits from at several hundred thousand pounds, was speculative and that, had Mr McGowan acted promptly to recall the interdict, any harm could have been avoided.

Roddy Dunlop KC and David Welsh represented Mr McGowan in the case, while Andrew Webster KC and Simon Crabb represented Springfield Properties.

This ruling serves as a reminder of the consequences of wrongful interdicts and the importance of addressing issues of health and safety promptly and effectively.

Asbestos dispute results in significant victory for construction professional, overturning initial court order of interdiction