Key Facts
- •Iluminesia Limited (AlterEgo) supplied cladding materials to RFL Facades Limited (RFL).
- •A dispute arose regarding the supply contract's existence and terms, particularly concerning the supply of GRC Fins.
- •AlterEgo initiated adjudication proceedings, which resulted in an award of £776,920.32 plus VAT, interest, and part of the adjudicator's fees.
- •RFL challenged the adjudication award through various jurisdictional and procedural arguments.
- •RFL also commenced Part 8 proceedings seeking declaratory relief to overturn the adjudicator's decision.
Legal Principles
Summary judgment principles: The claimant must show the defendant has no real prospect of success and there's no compelling reason for a trial.
CPR r24.3, Easyair Ltd v Opal Telecom Ltd [2009] EWHC 339 (Ch), AC Ward & Sons Ltd v Catlin (Five) Ltd [2009] EWCA Civ 1098, King v Steifel [2021] EWHC 1045 (Comm)
Adjudication under the Housing Grants, Construction and Regeneration Act 1996 (1996 Act): A statutory right to adjudicate exists for construction contracts but may be conferred contractually.
Housing, Grants, Construction and Regeneration Act 1996 (1996 Act), sections 104, 105, 108
Contract formation: A contract is formed upon offer and acceptance; acceptance can be by conduct.
Various case law cited in the judgment, not explicitly named.
Notice of Adjudication requirements under the Scheme for Construction Contracts (England and Wales) Regulations 1999: The notice must briefly describe the dispute, its location and timing, and the relief sought.
Scheme for Construction Contracts (England and Wales) Regulations 1999, Part 1, paragraph 1(3)
Natural justice in adjudication: An adjudicator cannot introduce a new basis for deciding the case without giving the parties an opportunity to respond; however, adjudicators are given latitude.
Stellite Construction Limited v Vascroft Contractors Limited [2016] EWHC 792 (TCC), Cantillon Ltd v Urvasco Ltd [2008] BLR 250, Roe Brickwork [2013] EWHC 3417 (TCC)
Approbation and reprobation: A party cannot simultaneously rely on and reject aspects of an adjudicator's decision.
RMP Construction Services Ltd v Chalcroft Ltd [2015] EWHC 3737 (TCC), Banque Des Marchands de Moscou v Kindersley [1952] Ch 112, Purton v Killer [2015] EWHC 2624 (TCC)
Outcomes
Summary judgment granted to AlterEgo.
The court found that RFL had no real prospect of successfully defending the adjudication award. The court determined there was a contract incorporating an adjudication clause, the Notice of Adjudication was valid, the adjudicator did not exceed his jurisdiction or breach natural justice, and the principle of approbation and reprobation did not apply.