Default Judgment on Building Liability Orders

On 20 October 2026 Constable J, in the Technology and Construction Court, handed down another important judgment in the rapidly-developing area of law of Building Liability Orders. 

The application involved Mulalley, who were the design and build contractor for a project in 2005. Sto UK supplied a system which used combustible EPS insulation and an organic render. In 2022, the court found that the system did not comply with Building Regulations and Mulalley was ordered to pay over £10 million.

Mulalley claimed a contribution from Sto UK. Sto UK went into administration, so the claim against it was frozen by the statutory moratorium. Mulalley joined Sto Germany, Sto UK's parent and sole shareholder, and sought a BLO against it under s.130 of the Building Safety Act 2022. Sto Germany filed no acknowledgment of service and no Defence and so Mulalley applied for default judgment. That application was heard on 16 October 2026 and resulted in the judgment a few days later.

Only Mulalley appeared before the judge, but the court refused Mulalley's request for default judgment in a specified amount and instead granted Mulalley's fallback position of judgment, with damages to be assessed. This was because although the £10 million judgment sum is a fixed figure, the contribution claimed by Mulalley was not. The court therefore ordered a further hearing to be listed and that any application by Sto Germany to set aside the judgment must be made within 28 days of service of the Order.

Any party, whether freehold owners or developers, facing a potential BLO claim obviously ought to take full advice promptly.