Lancashire Schools SPC Phase 2 Ltd v Lendlease Construction (Europe) Ltd & Ors [2024] EWHC 37 (TCC) (12 January 2024)

Lancashire Schools SPC Phase 2 Ltd v Lendlease Construction (Europe) Ltd & Ors [2024] EWHC 37 (TCC) (12 January 2024)

Clause 68 of the Project Agreement, read with clause 86, makes adjudication a mandatory condition precedent to litigation. However, in the exercise of the court's discretion under CPR Part 11, a stay or strike out is refused because the dispute is complex, multi-party, and contingent, making adjudication impractical and likely to cause delay and prejudice to the efficient resolution of the proceedings. The balance of justice and case management considerations favour allowing the litigation to proceed.

Citation
[2024] EWHC 37 (TCC)
Parties
Claimant/respondent: Lancashire Schools SPC Phase 2 Limited (formerly Catalyst Education (Lancashire) Phase 2 Limited); First Defendant: Lendlease Construction (Europe) Limited (formerly Bovis Lend Lease Limited); Second Defendant: Lendlease Construction Holdings (Europe) Limited (formerly Bovis Lend Lease Holdings Limited); Third Defendant: Equans Buildings Limited (formerly Vita Lend Lease Limited); Fourth Defendant/applicant: Lancashire County Council
Jurisdiction
England and Wales
Judgment Date
12 January 2024
Procedural Posture
Application in Technology and Construction Court Proceedings / Interlocutory Application to Set Aside Service or Strike Out Claim Against Fourth Defendant
Outcome
Application dismissed
Legal Topics
Alternative Dispute Resolution (adr), Jurisdiction, Adjudication Clauses, Stay of Proceedings, Condition Precedent, Interpretation of Contracts
Construction Law Contract Law Civil Procedure Alternative Dispute Resolution (adr) Jurisdiction Adjudication Clauses Stay of Proceedings Condition Precedent +1 more

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Parties

Lancashire Schools SPC Phase 2 Limited (formerly Catalyst Education (Lancashire) Phase 2 Limited)

Claimant/respondent

Lendlease Construction (Europe) Limited (formerly Bovis Lend Lease Limited)

First Defendant

Lendlease Construction Holdings (Europe) Limited (formerly Bovis Lend Lease Holdings Limited)

Second Defendant

Equans Buildings Limited (formerly Vita Lend Lease Limited)

Third Defendant

Lancashire County Council

Fourth Defendant/applicant

Procedural Posture

Application in Technology and Construction Court Proceedings / Interlocutory Application to Set Aside Service or Strike Out Claim Against Fourth Defendant

Legal Issues

  1. 1 Whether clause 68 of the Project Agreement makes adjudication a condition precedent to litigation
  2. 2 Whether the court should stay or strike out proceedings for failure to adjudicate first
  3. 3 Proper construction of dispute resolution and jurisdiction clauses in PFI contracts

Ratio Decidendi

Clause 68 of the Project Agreement, read with clause 86, makes adjudication a mandatory condition precedent to litigation. However, in the exercise of the court's discretion under CPR Part 11, a stay or strike out is refused because the dispute is complex, multi-party, and contingent, making adjudication impractical and likely to cause delay and prejudice to the efficient resolution of the proceedings. The balance of justice and case management considerations favour allowing the litigation to proceed.

Court Disposition

Application dismissed

Orders

  • The application by the Fourth Defendant to set aside service or strike out the claim is refused.
  • The proceedings against the Fourth Defendant are not stayed or struck out and may proceed.