United Utilities Water Limited v Northstone (NI) Limited (trading as Farrans Construction)

United Utilities Water Limited v Northstone (NI) Limited (trading as Farrans Construction)

The court held that the issues raised by Farrans were not suitable for determination under Part 8 proceedings due to insufficient evidence regarding the factual matrix and the parties' understanding of the contractual amendments and use of CEMAR. The court found that summary judgment should be granted to UU for enforcement of the adjudicator's award, as Farrans failed to provide adequate evidence to challenge the validity of the payment notice or the enforcement proceedings.

Parties
Claimant/defendant: United Utilities Water Limited; Defendant/claimant: Northstone (NI) Limited (trading as Farrans Construction)
Jurisdiction
England and Wales
Judgment Date
06 May 2026
Procedural Posture
Construction Contract Dispute (adjudication Enforcement and Part 8 Claim) / Judgment After Hearing of Summary Judgment Application and Part 8 Claim
Outcome
Summary judgment granted for United Utilities Water Limited; Part 8 claim not determined on merits.
Legal Topics
Adjudication Enforcement, Payment Notices, Pay Less Notices, Interpretation of Contractual Notices, Scheme for Construction Contracts
Construction Law Contract Law Adjudication Enforcement Payment Notices Pay Less Notices Interpretation of Contractual Notices Scheme for Construction Contracts

Case Brief

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Parties

United Utilities Water Limited

Claimant/defendant

Northstone (NI) Limited (trading as Farrans Construction)

Defendant/claimant

Procedural Posture

Construction Contract Dispute (adjudication Enforcement and Part 8 Claim) / Judgment After Hearing of Summary Judgment Application and Part 8 Claim

Legal Issues

  1. 1 Was PA-70 a valid payment notice requiring payment by Farrans of £3,269,328.05 with a due date of 13 October 2024 and a final date for payment of 20 October 2024?
  2. 2 If so, was Farrans obliged to issue a pay less notice if it wished to pay less than £3,269,328.05?

Ratio Decidendi

The court held that the issues raised by Farrans were not suitable for determination under Part 8 proceedings due to insufficient evidence regarding the factual matrix and the parties' understanding of the contractual amendments and use of CEMAR. The court found that summary judgment should be granted to UU for enforcement of the adjudicator's award, as Farrans failed to provide adequate evidence to challenge the validity of the payment notice or the enforcement proceedings.

Court Disposition

Summary judgment granted for United Utilities Water Limited; Part 8 claim not determined on merits.

Orders

  • Farrans to pay £3,269,328.05 plus VAT to United Utilities Water Limited as per the adjudicator's award.
  • Farrans to pay interest as awarded by the adjudicator between 19 October 2024 and 2 April 2025.