The £50m Bathhouse Development in Cardigan to include a new healthcare centre and Sainsbury’s store has been at the centre of High Court action by developers Liberty Mercian against contractors Cuddy Civil Engineering Ltd.
Liberty Mercian first put forward proposals to planning councillors in September 2008 but six years on and neither the health facility or supermarket have been built although a link road from Bathhouse to Gwbert Road was completed nearly two years ago.
When a dispute arose over plateau defects Liberty Mercian terminated Cuddy’s contract and took legal action against the contractor.
Liberty Mercian contended there had been a mistake as to the identity of the contractor and that the contracting party, whether it be Cuddy Civil Engineering Ltd or Cuddy Demolition and Dismantling Ltd were obliged to remedy defects.
Judge J Ramsey confirmed that at the contract termination date there was a continuing obligation on the part of the contractor to provide both the bond and warranties from its subcontractor in favour of Liberty Mercian.
The matter has been further compounded by the subcontractor at the site going into liquidation.
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