ROK Build Ltd v Harris Wharf Development Company Ltd [2006] EWHC 3573 (TCC)

This summary was provided by CMS Cameron McKenna LLP.

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

The referring party in an adjudication must be a contracting party to the relevant construction contract (or an assignee).  In this case, a substitution of one party for another had occurred, but no formal written assignment (as required by the contract) had taken place, therefore the court held that the referring party had no right to adjudication under the contract.

His Honour Judge Wilcox – Queen’s Bench Division, Technology and Construction Court

Rok applied for enforcement of an adjudication decision made pursuant to a dispute in a construction contract.  Harris Wharf contested the jurisdiction of the adjudicator on the grounds that Rok had not been the legal entity that had entered into the construction contract with Harris Wharf, therefore it had no right to commence adjudication proceedings against Wharf Harris. 

The contractor under the contract was stated to be Walter Llewellyn & Sons Limited and no formal written assignment (as required by the contract) had taken place.  Although it was generally acknowledged that there had been a de facto substitution of Rok Build Ltd for Walter Llewellyn & Sons Ltd, no written consent had ever been obtained.  Rok Build Ltd was neither directly nor indirectly the parent company of Walter Llewellyn & Sons Ltd.

Judge Wilcox held that it was reasonably arguable that the claimant in the enforcement action had no right to adjudication under the contract and therefore that it should not be entitled to summary judgment. 

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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