A developer is suing three Carey Group firms for £2.4m, saying it suffered losses due to a subsidiary’s role in the demolition bid-rigging scandal.
Circadian, a subsidiary of Hong Kong property giant CK Asset Holdings, has lodged a claim with the Competition Appeal Tribunal (CAT) for £2.4m in damages, plus interest and costs, from Carey Group and two of its subsidiaries: PJ Carey Plant Hire (Oval) and TE Scudder.
Circadian has brought the action on the basis of the Competition and Markets Authority’s (CMA’s) 2022 bid-rigging findings against 10 demolition companies including Scudder, which was fined £8.3m for its role.
The developer’s claim relates to one of the infringements that took place in 2014 on a contract for work on the Lots Road redevelopment project in London.
Circadian’s claim form said: “The claimant contends that the cartel arrangements caused the price of construction services to be higher than they would otherwise have been during the cartel period and continued to cause prices of construction services to be higher than they would otherwise have been after” the infringement was committed.
Circadian said that it suffered “loss and damage as a consequence of the defendants’ unlawful agreements and/or concerted practices (i) to fix the tender and supply of demolition services and asbestos removal services, to share commercially sensitive information, and not to compete properly in relation to construction services…”
The claim was filed 10 days ago, and under CAT rules, defendants have 28 days to file a defence. The CAT would not confirm whether or not a defence had been filed when Construction News contacted it this morning.
A spokesperson for Carey Group told CN: “As this is an ongoing legal matter we cannot provide any comment.”
Lots Road is a luxury residential development in Chelsea, west London, built on the site of a former power station.
The CMA concluded that Scudder and Brown and Mason participated in cartel activity on the Lots Road job between 28 July 2014 and 28 August 2014, followed by Scudder and Cantillon between 4 August 2014 and 1 September 2014.
According to Circadian’s claim form, Carey Group and PJ Carey Plant Hire (Oval) are presumed to “exercise a decisive influence of the commercial policies of its wholly owned subsidiaries” and are therefore liable for TE Scudder’s involvement.
Circadian, formerly Lots Road Developments, was set up to develop the project.