J & B Hopkins Limited v A & V Building Soltuions Limited
[2023] EWHC 301 (TCC)
Bell Building Limited v TClarke Contracting Limited
25 July 2024
[2024] EWHC 1929 (TCC)
High Court
A subcontractor (Bell) won a payment dispute against a main contractor (TCL). TCL argued the arbitrator made a mistake and awarded too much money. The judge sided with Bell, saying that the arbitrator hadn't done anything wrong and that TCL's argument wasn't strong enough to overturn the decision.
Key Facts
- •Bell Building Limited (Bell) sought to enforce an adjudicator's decision against TCLarke Contracting Limited (TCL) for payment of £2,129,672.69 plus VAT, interest, and costs.
- •The dispute arose from Payment Application No. 18, where TCL issued a Pay Less Notice that Bell challenged as invalid.
- •Bell's initial claim in the adjudication was for £1,443,981.51 plus VAT, but the adjudicator, after clarifying the calculation with Bell, awarded a higher sum.
- •TCL argued the adjudicator lacked jurisdiction and acted in breach of natural justice by exceeding the claimed amount and undertaking a valuation exercise.
- •The adjudicator clarified that the adjudication concerned the validity of the Pay Less Notice, not the true value of the works.
Legal Principles
The scope of an adjudicator's jurisdiction and the definition of the dispute are not overly legalistic.
Cantillon Limited v. Urvasco Limited [2008] EWHC 282 (TCC)
Breaches of natural justice must be material and not peripheral. The adjudicator must give parties an opportunity to comment on issues that are decisive or potentially important, but not if a party has argued a point and the other party has not responded.
Cantillon Limited v. Urvasco Limited [2008] EWHC 282 (TCC); Roe Brickwork Limited v. Wates Construction Limited [2013] EWHC 3417 (TCC)
An adjudicator can reach a decision on a point of importance based on material before them, even if neither party contended for that basis, provided the parties were aware of the material and the issues were fairly canvassed.
Roe Brickwork Limited v. Wates Construction Limited [2013] EWHC 3417 (TCC)
Outcomes
Summary judgment granted to Bell.
The court found no arguable defense to the enforcement of the adjudicator's decision. The adjudicator acted within jurisdiction, responding to TCL's submissions and correcting the arithmetic of Bell's claim, not undertaking an independent valuation. There was no material breach of natural justice.