Morganstone Limited v Birkemp Limited

Morganstone Limited v Birkemp Limited

Clause 10 of the subcontract provided a continuing right to interim payments, with payment schedules taking precedence only where agreed; in the absence of an agreed schedule after March 2023, clause 10 applied. However, the adjudicator's decision was unenforceable because he wrongly excluded Morganstone's set-off/cross-claims as outside his jurisdiction, constituting a material breach of natural justice.

Parties
Claimant (part 8), Defendant (part 7): Morganstone Limited; Defendant (part 8), Claimant (part 7): Birkemp Limited
Jurisdiction
England and Wales
Judgment Date
25 April 2024
Procedural Posture
Civil (construction/commercial) / Judgment After Trial of Consolidated Part 7 and Part 8 Claims
Outcome
Both Part 8 and Part 7 claims dismissed; adjudicator's decision unenforceable for breach of natural justice.
Legal Topics
Adjudication Enforcement, Interim Payments, Contractual Interpretation, Natural Justice, Set Off and Cross Claims
Construction Law Contract Law Civil Procedure Adjudication Enforcement Interim Payments Contractual Interpretation Natural Justice Set Off and Cross Claims

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 4 Authorities cited 15 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Morganstone Limited

Claimant (part 8), Defendant (part 7)

Birkemp Limited

Defendant (part 8), Claimant (part 7)

Procedural Posture

Civil (construction/commercial) / Judgment After Trial of Consolidated Part 7 and Part 8 Claims

Legal Issues

  1. 1 Whether Birkemp was contractually entitled to make interim payment applications after March 2023
  2. 2 Whether the adjudicator's decision was enforceable given alleged breach of natural justice by excluding set-off/cross-claims

Ratio Decidendi

Clause 10 of the subcontract provided a continuing right to interim payments, with payment schedules taking precedence only where agreed; in the absence of an agreed schedule after March 2023, clause 10 applied. However, the adjudicator's decision was unenforceable because he wrongly excluded Morganstone's set-off/cross-claims as outside his jurisdiction, constituting a material breach of natural justice.

Court Disposition

Both Part 8 and Part 7 claims dismissed; adjudicator's decision unenforceable for breach of natural justice.

Orders

  • Part 8 claim dismissed
  • Part 7 claim dismissed