Paul Jensen Ltd v Stavely Industries [2001] WN 101245

This summary was provided by CMS Cameron McKenna LLP.

For more information visit http://www.cms-cmck.com/Construction/Construction-Disputes

The Adjudicator was entitled to his fees, where he decided that he did not have jurisdiction and did not proceed with the adjudication. There was no suggestion of default or misconduct. It did not matter that he may have been wrong in concluding that he had no jurisdiction.

District Judge Donnelly at Wigan County Court

27 September 2001

This case arose from a referral by S of a dispute between them and Salford City Council to Paul Jensen, of the Claimant company (PJL), to act as Adjudicator. Mr Jensen was asked to consider whether he had jurisdiction to hear the adjudication and he dealt with this matter as a preliminary issue.

Mr Jensen took the view that he did not have jurisdiction to hear the adjudication. S alleged that the Mr Jensen was wrong in deciding that he did not have jurisdiction and refused to pay his fees. PJL brought an action to recover his fees.

District Judge Donnelly noted that paragraph 11 of the Scheme for Construction Contracts (England Wales) Regulations 1998 deals with the question of aborting the appointment of the Adjudicator and entitlement to fees. As there was no suggestion of default or misconduct on the part of the Mr Jensen when deciding whether he had jurisdiction, and as an alleged wrongful determination could not be construed as a default or misconduct the Scheme indicated that the Claimant was entitled to his fees.

The Adjudicator was entitled to his fees, where he decided that he did not have jurisdiction and did not proceed with the adjudication. There was no suggestion of default or misconduct. It did not matter that he may have been wrong in concluding he had no jurisdiction.

This summary was provided by CMS Cameron McKenna LLP.

For more information visit http://www.cms-cmck.com/Construction/Construction-Disputes

Click here to read full-screen | Click here to print the case