MT Højgaard Not Liable in Robin Rigg Trial
- Business & Finance
The Court of Appeal in London has ruled that MT Højgaard is not liable for the costs of repairing the foundations for the Robin Rigg Offshore Wind Farm, off the Scottish coast.
In April 2014, the first ruling went against MT Højgaard, but an appeal was filed, and the Court of Appeal has now reversed the ruling in favour of MT Højgaard. Permission to bring the decision of the Court of Appeal before the Supreme Court, which is the highest body of appeal, may be sought, the company informed.
The facts of the case are that in 2007-2009, MT Højgaard designed, fabricated and installed foundations for the Robin Rigg Offshore Wind Farm, off the west coast of Scotland. Following completion of the works, weaknesses were discovered in the grouted connections of the foundations as a result of errors in the then applicable international standard issued by DNV.
The wind farm client, E.ON Climate and Renewables, claimed MT Højgaard was responsible for the problem with the grouted connections and that MT Højgaard should pay damages, in particular the cost of rectifying the problem.
MT Højgaard denied liability arguing that the Group had observed the applicable international standards as required by the client. The Court of Appeal found that MT Højgaard was not liable to E.ON in respect of the problem with the grouted connections and in particular that there was no “fit for purpose” obligation.
In 2015, the management of MT Højgaard still expects an operating profit of DKK 300-375 million before special items equivalent to an EBIT margin of 4-5%. If the case is not appealed by the opposing party, special items will amount to an income of about DKK 195 million.