PC Harrington Contractors Ltd v Systech International Ltd [2012] EWCA Civ 1371 (23 October 2012)

PC Harrington Contractors Ltd v Systech International Ltd [2012] EWCA Civ 1371 (23 October 2012)

An adjudicator who fails to produce an enforceable decision due to breach of natural justice is not entitled to payment of fees, as the contractual and statutory scheme require an enforceable decision as the condition precedent for payment.

Citation
[2012] EWCA Civ 1371
Parties
Appellant/defendant: PC Harrington Contractors Ltd; Respondent/claimant: Systech International Ltd
Jurisdiction
England and Wales
Judgment Date
23 October 2012
Procedural Posture
Appeal From High Court (technology and Construction Court) / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Adjudicator's Fees, Enforceability of Adjudicator's Decision, Natural Justice, Failure of Consideration, Statutory Adjudication Scheme
Construction Law Contract Law Adjudicator's Fees Enforceability of Adjudicator's Decision Natural Justice Failure of Consideration Statutory Adjudication Scheme

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Parties

PC Harrington Contractors Ltd

Appellant/defendant

Systech International Ltd

Respondent/claimant

Procedural Posture

Appeal From High Court (technology and Construction Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Is an adjudicator entitled to fees where the decision is unenforceable due to breach of natural justice?
  2. 2 Does the contract or statutory scheme provide for payment in such circumstances?

Ratio Decidendi

An adjudicator who fails to produce an enforceable decision due to breach of natural justice is not entitled to payment of fees, as the contractual and statutory scheme require an enforceable decision as the condition precedent for payment.

Court Disposition

Appeal allowed

Orders

  • Adjudicator not entitled to fees for unenforceable decisions
  • Judgment of High Court reversed