LJR Interiors Ltd v Cooper Construction Ltd [2023] EWHC 3339 (TCC) (11 January 2023)

LJR Interiors Ltd v Cooper Construction Ltd [2023] EWHC 3339 (TCC) (11 January 2023)

The adjudicator erred in law by failing to consider when the right to payment accrued under the contract and by treating the absence of a pay less notice as determinative. The court held that the limitation period under section 5 of the Limitation Act 1980 applied to the underlying payment claim, which accrued no later than 2014. Therefore, the claim was statute barred and the adjudicator's decision was unenforceable.

Citation
[2023] EWHC 3339 (TCC)
Parties
Claimant (part 7) / Defendant (part 8): LJR Interiors Limited; Defendant (part 7) / Claimant (part 8): Cooper Construction Limited
Jurisdiction
England and Wales
Judgment Date
11 January 2023
Procedural Posture
Construction Contract Adjudication Enforcement and Declaratory Relief (part 7 and Part 8 Claims) / High Court (tcc) Judgment on Summary Judgment Application and Declaratory Relief
Outcome
Adjudicator's decision declared void and unenforceable; summary judgment refused.
Legal Topics
Adjudication Enforcement, Limitation Act 1980, Summary Judgment, Scheme for Construction Contracts, Payment Disputes, Jurisdiction of Adjudicator
Construction Law Contract Law Civil Procedure Adjudication Enforcement Limitation Act 1980 Summary Judgment Scheme for Construction Contracts Payment Disputes +1 more

Case Brief

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Parties

LJR Interiors Limited

Claimant (part 7) / Defendant (part 8)

Cooper Construction Limited

Defendant (part 7) / Claimant (part 8)

Procedural Posture

Construction Contract Adjudication Enforcement and Declaratory Relief (part 7 and Part 8 Claims) / High Court (tcc) Judgment on Summary Judgment Application and Declaratory Relief

Legal Issues

  1. 1 Whether the adjudicator's decision is enforceable given a limitation defence under section 5 of the Limitation Act 1980
  2. 2 Whether the adjudicator erred in law by finding the claim not statute barred
  3. 3 Whether limitation is a substantive defence in adjudication proceedings

Ratio Decidendi

The adjudicator erred in law by failing to consider when the right to payment accrued under the contract and by treating the absence of a pay less notice as determinative. The court held that the limitation period under section 5 of the Limitation Act 1980 applied to the underlying payment claim, which accrued no later than 2014. Therefore, the claim was statute barred and the adjudicator's decision was unenforceable.

Court Disposition

Adjudicator's decision declared void and unenforceable; summary judgment refused.

Orders

  • Part 7 claim for summary judgment dismissed
  • Declaration granted on Part 8 claim that adjudicator's decision is void and unenforceable due to limitation