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City Inn Ltd v Shepherd Construction Ltd [2001] Outer House. CA 101/00
This summary was provided by CMS Cameron McKenna LLP.
For more information visit http://www.cms-cmck.com/Construction/Construction-Disputes
An adjudicator's decision does not affect the burden of proof in arbitration or court proceedings.
Lord MacFadyen, Outer House, Court of Session
17 July 2001
CIL engaged SCL as the contractor for the construction of a hotel in Bristol under an amended JCT Standard Form of Building Contract Private Edition with Quantities (1980 Edition). The project over-ran. The Architect certified SCL an extension of time of 4 weeks. An adjudicator granted SCL a further 5 weeks. The dispute went to court, CIL contesting both the 4 week and 5 week extensions of time, claiming liquidated and ascertained damages and repayment of loss and expense certified by the Architect.
SCL said that the adjudicator's decision threw the burden of proof on to CIL to show that the extension of time granted by the adjudicator was not justified. The binding quality of the adjudicator's decision continued not merely until the dispute was made the subject of litigation, but until the court proceedings were finally determined. During the proceedings the adjudicator's decision remained binding and had to be rebutted by the party arguing for a different result.
The judge rejected this, holding that the function of adjudication, as contemplated by the 1996 Act, goes no further than providing a speedy means of reaching a binding interim determination of disputes under construction contracts. It is no part of the adjudicator's function to reverse the onus of proof in any arbitration or litigation to which the parties resort to obtain a final determination of their dispute. The burden of proof in any such action lies where the law places it, and is unaffected by the terms of the adjudicator's decision.
An adjudicator's decision does not affect the burden of proof in arbitration or court proceedings.
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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