PC Harrington Contractors Ltd v Systech International Ltd

PC Harrington Contractors Ltd v Systech International Ltd

The adjudicator is not entitled to be paid any fees where he has not produced an enforceable decision, as the contract and statutory scheme require an enforceable decision as the bargained-for performance. Ancillary and preparatory steps have no discrete value absent an enforceable decision, and the Scheme expressly withholds fees in cases of default or misconduct, which includes breach of natural justice.

Parties
Appellant/defendant: PC Harrington Contractors Ltd; Respondent/claimant: Systech International Ltd
Jurisdiction
England and Wales
Judgment Date
23 October 2012
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Adjudicator's Fees, Enforceability of Adjudicator's Decision, Natural Justice, Failure of Consideration
Construction Law Contract Law Adjudicator's Fees Enforceability of Adjudicator's Decision Natural Justice Failure of Consideration

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Parties

PC Harrington Contractors Ltd

Appellant/defendant

Systech International Ltd

Respondent/claimant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether an adjudicator is entitled to fees where the decision is unenforceable due to breach of natural justice
  2. 2 Whether the contract for adjudication is entire or divisible regarding payment of fees

Ratio Decidendi

The adjudicator is not entitled to be paid any fees where he has not produced an enforceable decision, as the contract and statutory scheme require an enforceable decision as the bargained-for performance. Ancillary and preparatory steps have no discrete value absent an enforceable decision, and the Scheme expressly withholds fees in cases of default or misconduct, which includes breach of natural justice.

Court Disposition

Appeal allowed

Orders

  • Adjudicator not entitled to fees for unenforceable decisions
  • No fees payable to Systech International Ltd in respect of the three adjudications