Lidl Great Britain Ltd v Closed Circuit Cooling Ltd (t/a 3cl) [2023] EWHC 3051 (TCC) (29 November 2023)

Lidl Great Britain Ltd v Closed Circuit Cooling Ltd (t/a 3cl) [2023] EWHC 3051 (TCC) (29 November 2023)

Grove principle prohibits commencement of true value adjudications relating to matters that could have been subject of payless notice in same payment cycle as notified sum; adjudicator lacks jurisdiction to decide such matters if referral made before payment of notified sum; adjudication 2 partially overlapped with PAY-7 items and thus to that extent lacked jurisdiction; adjudication 3 lacked jurisdiction over period overlapping with PAY-7 liquidated damages claim.

Citation
[2023] EWHC 3051 (TCC)
Parties
Part 7 Claimant / Part 8 Defendant: Lidl Great Britain Limited; Part 7 Defendant / Part 8 Claimant: Closed Circuit Cooling Limited t/a 3CL
Jurisdiction
England and Wales
Judgment Date
29 November 2023
Procedural Posture
Part 7 Claim for Summary Judgment and Part 8 Claim for Declarations / Judgment After Hearing
Outcome
Summary judgment for Lidl in part; declaration for 3CL in part
Legal Topics
Adjudication Enforcement, Jurisdiction of Adjudicator, Payment Obligations Under Housing Grants, Construction and Regeneration Act 1996, Grove Principle, Liquidated Damages, Extension of Time
Construction Law Contract Law Adjudication Enforcement Jurisdiction of Adjudicator Payment Obligations Under Housing Grants, Construction and Regeneration Act 1996 Grove Principle Liquidated Damages Extension of Time

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 7 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Lidl Great Britain Limited

Part 7 Claimant / Part 8 Defendant

Closed Circuit Cooling Limited t/a 3CL

Part 7 Defendant / Part 8 Claimant

Procedural Posture

Part 7 Claim for Summary Judgment and Part 8 Claim for Declarations / Judgment After Hearing

Legal Issues

  1. 1 Whether the Grove principle prohibits commencement of adjudications before payment of notified sum under s.111 Housing Grants, Construction and Regeneration Act 1996
  2. 2 Whether adjudication decisions 2 and 3 are unenforceable for lack of jurisdiction or breach of public policy
  3. 3 Scope of Grove principle—does it apply to all adjudications or only true value adjudications relating to same payment cycle

Ratio Decidendi

Grove principle prohibits commencement of true value adjudications relating to matters that could have been subject of payless notice in same payment cycle as notified sum; adjudicator lacks jurisdiction to decide such matters if referral made before payment of notified sum; adjudication 2 partially overlapped with PAY-7 items and thus to that extent lacked jurisdiction; adjudication 3 lacked jurisdiction over period overlapping with PAY-7 liquidated damages claim.

Court Disposition

Summary judgment for Lidl in part; declaration for 3CL in part

Orders

  • Lidl entitled to summary judgment for £496,946.02 of £757,845.63 awarded in adjudication 2, plus proportionate interest and adjudicator's costs.
  • 3CL entitled to declaration that adjudicator in adjudication 3 had no jurisdiction to determine extension of time for period 18 June 2022 to 29 September 2022.