DGT Steel and Cladding Ltd v Cubitt Building and Interiors Ltd

DGT Steel and Cladding Ltd v Cubitt Building and Interiors Ltd

There was a binding and mandatory adjudication agreement requiring disputes to be submitted to adjudication before court proceedings. The dispute in the current proceedings was substantially different from the previous adjudication and had not been adjudicated. DGT breached the adjudication agreement by commencing court proceedings first. There was no good reason advanced by DGT to refuse a stay. The court exercised its discretion to stay the proceedings pending adjudication.

Parties
Claimant/respondent: DGT Steel and Cladding Limited; Defendant/applicant: Cubitt Building and Interiors Limited
Jurisdiction
England and Wales
Judgment Date
04 July 2007
Procedural Posture
Application for Stay of Proceedings / Judgment on Application for Stay Pending Adjudication
Outcome
Application granted; proceedings stayed.
Legal Topics
Adjudication Agreements, Stay of Proceedings, Alternative Dispute Resolution, Contract Interpretation
Construction Law Civil Procedure Adjudication Agreements Stay of Proceedings Alternative Dispute Resolution Contract Interpretation

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Parties

DGT Steel and Cladding Limited

Claimant/respondent

Cubitt Building and Interiors Limited

Defendant/applicant

Procedural Posture

Application for Stay of Proceedings / Judgment on Application for Stay Pending Adjudication

Legal Issues

  1. 1 Whether there was a binding agreement to adjudicate disputes before commencing court proceedings
  2. 2 Whether the current proceedings were brought in breach of the adjudication agreement
  3. 3 Whether there is good reason not to grant a stay of proceedings

Ratio Decidendi

There was a binding and mandatory adjudication agreement requiring disputes to be submitted to adjudication before court proceedings. The dispute in the current proceedings was substantially different from the previous adjudication and had not been adjudicated. DGT breached the adjudication agreement by commencing court proceedings first. There was no good reason advanced by DGT to refuse a stay. The court exercised its discretion to stay the proceedings pending adjudication.

Court Disposition

Application granted; proceedings stayed.

Orders

  • Stay of proceedings pending adjudication pursuant to the inherent jurisdiction of the court.