CJP Builders Ltd v William Verry Ltd [2008] EWHC 2025 (TCC)

This summary was provided by CMS Cameron McKenna LLP.

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When an adjudicator makes an error in his decision it is usually enforced by the courts irrespective of the error.  However, where that error leads to a breach of the rules of natural justice by that adjudicator it may be challenged.

Mr Justice Akenhead – Queen’s Bench Division, Technology and Construction Court

Background

The parties entered into a sub-contract, under which the claimants were to carry out brickwork, blockwork and stonework as part of a construction project.  The defendants failed to pay an interim payment application by the claimants and the claimants duly started adjudication proceedings.  The defendant did not serve a Response to the claimant’s Referral Notice within the requisite time stated in the contract or within an extension of time for service agreed by the claimants.  The defendants were 5 to 6 hours late in the service of main section of their Response and the adjudicator decided that he did not have the discretion, under the sub-contract, to allow an extension and thus refused to give regard to the Response and ultimately found in favour of the claimants.

Issues

The claimant then sought to enforce the adjudicator’s decision in the courts and the defendant sought to challenge the adjudicator’s decision on the grounds that he had no jurisdiction or that he had breached the rules of natural justice by disregarding the submissions in the Response.

Decision

Mr Justice Akenhead did not uphold the adjudicator’s decision, stating that the adjudicator should have considered the Response by the defendants and that he did have the discretion under the wording of the sub-contract to extend the time for service.  Akenhead J did find that the adjudicator had the jurisdiction to hear the original dispute but by refusing the hear the submissions in the Response, the adjudicator had indeed infringed the rules of natural justice by failing to give both parties a fair hearing.

This summary was provided by CMS Cameron McKenna LLP.

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

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