黑洞社区

Contractor John Sisk & Son and Shangri-La Hotels have reached an out of court settlement over their multi-million pound High Court dispute over major delays to the fit-out of the Shard鈥檚 luxury hotel.

In June, Shangri-La hit John Sisk & Son with a 拢57m High Court claim over problems on the 拢39.2m fit-out of its flagship European hotel - which ultimately opened a year late last May. John Sisk & Son hit back a month later with a vigorous defence and a 拢26.8m counterclaim.

In a joint statement issued this morning both client and contracotr say they have 鈥渞eached an amicable settlement to the claims and counterclaims鈥�, adding: 鈥淭here are no admissions of fault or liability by either party in the settlement reached鈥�.

黑洞社区 believes that the settlement is a so-called 鈥渨alk-away鈥� deal, with no money changing hands on either side. If true, this would mean effectively that both parties would have to absorb costs already incurred on the contract and legal action, but that the risk of incurring further costs related to the case disappears

Shangri-La had sued Sisk for 拢57m over its alleged mismanagement of the fit-out, which caused sections of the work to fall up to 37 weeks behind schedule and ultimately led to the hotel opening a year late last May.

Sisk鈥檚 contract was terminated in August 2013 and it was replaced by rival fit-out firm Chorus.

Sisk subsequently hit back at Shangri-La with a 拢26.8m counterclaim, denying Shangri-La鈥檚 拢57m claim 鈥渋n its entirety鈥� and arguing that Shangri-La鈥檚 decision to terminate its contract and replace the firm 鈥渁mounted to a fundamental breach of contract鈥� resulting in 鈥渟ignificant loss and damage鈥� for Sisk.