Henry Construction Projects Ltd v ProMEP Ltd [2024] EWHC 1825 (TCC) (16 July 2024)

Henry Construction Projects Ltd v ProMEP Ltd [2024] EWHC 1825 (TCC) (16 July 2024)

The CVA expressly excluded ProMep's claims against Henry from its scope by clear wording in clause 8.3, so those claims survived the CVA and were enforceable. There was no automatic insolvency set-off applicable to these claims under the CVA. The summary of counsel's advice provided by ProMep did not amount to a material misrepresentation or fraud capable of vitiating the adjudicator's decision. The adjudicator's decision was therefore enforceable by summary judgment.

Citation
[2024] EWHC 1825 (TCC)
Parties
Claimant (part 7 Defendant, Part 8 Claimant): Henry Construction Projects Limited; Defendant (part 7 Claimant, Part 8 Defendant): ProMEP Limited
Jurisdiction
England and Wales
Judgment Date
16 July 2024
Procedural Posture
TCC (technology and Construction Court) Part 7 and Part 8 Claims / Judgment on Summary Judgment Application for Enforcement of Adjudicator's Decision and Related Declaratory Relief
Outcome
Summary judgment granted for ProMep; adjudicator's decision enforced.
Legal Topics
Adjudication Enforcement, Company Voluntary Arrangement (cva), Insolvency Set Off, Contract Interpretation, Fraud in Adjudication, Summary Judgment
Construction Law Insolvency Law Civil Procedure Adjudication Enforcement Company Voluntary Arrangement (cva) Insolvency Set Off Contract Interpretation Fraud in Adjudication +1 more

Case Brief

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Parties

Henry Construction Projects Limited

Claimant (part 7 Defendant, Part 8 Claimant)

ProMEP Limited

Defendant (part 7 Claimant, Part 8 Defendant)

Procedural Posture

TCC (technology and Construction Court) Part 7 and Part 8 Claims / Judgment on Summary Judgment Application for Enforcement of Adjudicator's Decision and Related Declaratory Relief

Legal Issues

  1. 1 Whether ProMep's claims against Henry were excluded from the CVA and thus enforceable post-CVA
  2. 2 Whether insolvency set-off under IR 14.25 applied to the claims between the parties under the CVA
  3. 3 Whether ProMep's summary of counsel's advice constituted a material misrepresentation amounting to fraud and thus a defence to enforcement of the adjudicator's decision

Ratio Decidendi

The CVA expressly excluded ProMep's claims against Henry from its scope by clear wording in clause 8.3, so those claims survived the CVA and were enforceable. There was no automatic insolvency set-off applicable to these claims under the CVA. The summary of counsel's advice provided by ProMep did not amount to a material misrepresentation or fraud capable of vitiating the adjudicator's decision. The adjudicator's decision was therefore enforceable by summary judgment.

Court Disposition

Summary judgment granted for ProMep; adjudicator's decision enforced.

Orders

  • Henry Construction Projects Limited to pay ProMep Limited the sum awarded by the adjudicator (£90,380.49).
  • Henry's application for specific disclosure of counsel's advice refused.