Moorfields settles £3.4m legal dispute with contractor

The specialist eye hospital runs satellite units at many different trusts and a report to the board about the satellite at Northwick Park said a “loss and expense claim” had been submitted but that the trust had settled and thus avoided “possible adjudication”.

The report said: “The trust waited for the completion of the contractual six-month post-practical completion period for the contractor (BWI) to furnish further paperwork surrounding the loss and expense claim.

“An options paper, reflecting the possible outcomes and risks of going to adjudication, was developed in readiness for final negotiations; and a without prejudice offer was made at £3.4m for full and final settlement. Following further negotiations, and the issue of written correspondence, the trust has gained agreement from the contractor to settle at the above sum.

“A final letter has now been issued, and this has been signed and returned by the contractor.This settlement has removed a possible £700k risk should adjudication have been awarded against the trust.”

A spokeswoman for the trust said: “It was a payment from the trust, but to clarify, it covers the delivery of all construction and refurbishment works at our eye centre based at Northwick Park.”