Lancashire Schools SPC Phase 2 Limited v Lendlease Construction (Europe) Limited & Ors

Lancashire Schools SPC Phase 2 Limited v Lendlease Construction (Europe) Limited & Ors

Although clause 68 of the Project Agreement is a valid and enforceable condition precedent requiring adjudication before litigation, the court declined to stay or strike out the proceedings because the dispute is multi-party, complex, and a bilateral adjudication would not resolve the issues or serve the overriding objective. The court exercised its discretion to allow the litigation to proceed, noting that none of the other parties insisted on adjudication and a stay would cause delay and procedural complications.

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
11 October 2024
Procedural Posture
Civil (commercial Construction Dispute) / Interlocutory Application to Set Aside Service or Strike Out Claim (jurisdiction/dispute Resolution)
Outcome
Application dismissed
Legal Topics
Jurisdiction, Alternative Dispute Resolution (adr), Adjudication, Condition Precedent, Stay of Proceedings, Strike Out Applications
Civil Procedure Construction Law Contract Law Jurisdiction Alternative Dispute Resolution (adr) Adjudication Condition Precedent Stay of Proceedings +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

Civil (commercial Construction Dispute) / Interlocutory Application to Set Aside Service or Strike Out Claim (jurisdiction/dispute Resolution)

Legal Issues

  1. 1 Whether clause 68 of the Project Agreement requires adjudication as 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 clauses in PFI contracts

Ratio Decidendi

Although clause 68 of the Project Agreement is a valid and enforceable condition precedent requiring adjudication before litigation, the court declined to stay or strike out the proceedings because the dispute is multi-party, complex, and a bilateral adjudication would not resolve the issues or serve the overriding objective. The court exercised its discretion to allow the litigation to proceed, noting that none of the other parties insisted on adjudication and a stay would cause delay and procedural complications.

Court Disposition

Application dismissed

Orders

  • Application under CPR Part 11 and CPR 3.4 dismissed
  • No stay or strike out of the proceedings against the Authority