Firm hit with £100m in cladding court claims before collapse
Summary
Construction News reports that Sto Ltd has been linked to five High Court cases over historic StoTherm Classic cladding installations, with alleged losses and remediation costs exceeding £100m. The company entered administration before the claims were resolved, and administrators say they are still assessing historical cladding liabilities and the impact on unsecured creditors.
Why it matters
This is relevant to residential property surveyors because it highlights ongoing litigation and insolvency risk around legacy cladding systems, which can affect defect identification, valuation, and remediation advice. It also underscores the importance of distinguishing historic product-specific issues from current product safety claims.
Key points
- Five High Court cases concern historic StoTherm Classic installations.
- Reported claims and remediation costs exceed £100m in total.
- Sto Ltd entered administration, triggering moratorium rules on proceedings.
- Administrators are reviewing historical cladding records and defending selected claims.
- The cases do not determine the safety of currently marketed Sto systems.
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