One Hyde Park residents win legal battle over £35 million defects

Residents would be required to move out in stages while repairs take place

Lawyers representing One Hyde Park Limited, which owns the freehold, said pipework in the properties became corroded because it was not properly installed (Susannah Ireland)

The manager of London's One Hyde Park apartment block, one of the world's most expensive addresses, on Monday won its lawsuit against a British construction giant for just over £35 million ($47.98 million) in pipework repairs.

One Hyde Park was developed by British brothers Christian and Nick Candy with Qatari businessman Sheikh Hamad bin Jassim bin Jaber Al-Thani. One apartment in the block is currently on sale for £175 million ($240 million).

Lawyers representing One Hyde Park Limited, which owns the freehold, said pipework in the properties became corroded because it was not properly installed.

The apartment complex was designed and constructed by a subsidiary of Laing O'Rourke, Laing O'Rourke Construction South Limited, and completed in 2011.

Laing O'Rourke Construction South Limited denied that the pipework was in disrepair, but did not send representatives to defend the case at a hearing last year. Laing O'Rourke did not immediately respond to a request for comment.

One Hyde Park sued at London's High Court to cover the cost of removing and replacing the majority of the pipework, which would require tenants to move out in stages while the work is carried out.

The One Hyde Park apartment complex was designed and constructed by a subsidiary of Laing O'Rourke, Laing O'Rourke Construction South Limited, and completed in 2011 (GETTY IMAGES)

Judge Nerys Jefford ruled One Hyde Park was responsible for the repair of the pipework – which comprised £34.4 million of the claim's value – and that it had corroded because Laing O'Rourke failed to properly install insulation, meaning it was in breach of contract and liable for remedial works.

She also ruled in One Hyde Park's favour on the rest of its lawsuit, which a spokesperson for One Hyde Park described as "a decisive victory for all the residents at One Hyde Park".

"We are committed to ensuring Laing O'Rourke is held fully accountable and makes full and fair payment for the construction defects it has been found responsible for," the spokesperson said in a statement.

Billed as the “ultimate luxury” for the super-rich, the development’s 86 apartments initially went on the market for up to £136 million in 2008 but have not necessarily proved lucrative for buyers.