Kitt & Anor v The Laundry Building Ltd & Anor

Kitt & Anor v The Laundry Building Ltd & Anor

The adjudicator did not exceed his jurisdiction or breach natural justice by considering all items in the final account and set-offs, despite ETC’s attempt to limit the scope in the Notice of Adjudication. Both TLB and ETC were jointly and severally liable for the adjudicator’s fees under the tripartite contract, and TLB was entitled to recover from ETC any sums paid to the adjudicator.

Parties
Claimant: Gary Kitt; Claimant: EC Harris LLP; Defendant and Part 20 Claimant: The Laundry Building Limited; Part 20 Defendant: Etcetera Construction Services Limited
Jurisdiction
England and Wales
Judgment Date
17 December 2014
Procedural Posture
Civil (construction/adjudication Fees) / Judgment After Summary Judgment Application
Outcome
Judgment for the Claimants (Mr Kitt and EC Harris LLP) against TLB; judgment for TLB against ETC for the same amount.
Legal Topics
Adjudicator's Fees, Jurisdiction of Adjudicator, Natural Justice, Tripartite Contracts, Set Off and Cross Claims
Construction Law Contract Law Civil Procedure Adjudicator's Fees Jurisdiction of Adjudicator Natural Justice Tripartite Contracts Set Off and Cross Claims

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Parties

Gary Kitt

Claimant

EC Harris LLP

Claimant

The Laundry Building Limited

Defendant and Part 20 Claimant

Etcetera Construction Services Limited

Part 20 Defendant

Procedural Posture

Civil (construction/adjudication Fees) / Judgment After Summary Judgment Application

Legal Issues

  1. 1 Whether the adjudicator exceeded his jurisdiction by considering items ETC sought to exclude from adjudication
  2. 2 Whether the adjudicator acted in breach of the rules of natural justice
  3. 3 Whether the parties were jointly and severally liable for the adjudicator’s fees

Ratio Decidendi

The adjudicator did not exceed his jurisdiction or breach natural justice by considering all items in the final account and set-offs, despite ETC’s attempt to limit the scope in the Notice of Adjudication. Both TLB and ETC were jointly and severally liable for the adjudicator’s fees under the tripartite contract, and TLB was entitled to recover from ETC any sums paid to the adjudicator.

Court Disposition

Judgment for the Claimants (Mr Kitt and EC Harris LLP) against TLB; judgment for TLB against ETC for the same amount.

Orders

  • TLB to pay £9,000 to the Claimants for adjudicator’s fees and costs.
  • ETC to reimburse TLB £9,000 for the adjudicator’s fees and pay £5,400 in respect of TLB’s costs.