Cadent Gas Ltd v CityFibre Ltd [2026] EWCA Civ 46 (05 February 2026)

Cadent Gas Ltd v CityFibre Ltd [2026] EWCA Civ 46 (05 February 2026)

Claims under section 82(1)(b) of the New Roads and Street Works Act 1991 arise under a provision 'expressed as conferring a right to compensation' due to the use of the phrase 'shall compensate', and are therefore excluded from the mandatory arbitration regime by section 96(3)[2]; such disputes must be litigated in court, not arbitrated.

Citation
[2026] EWCA Civ 46
Parties
Claimant/respondent: CADENT GAS LIMITED; Defendant/appellant: CITYFIBRE LIMITED
Jurisdiction
England and Wales
Judgment Date
05 February 2026
Procedural Posture
Civil Appeal / Appeal From High Court Judgment Setting Aside Partial Arbitral Award
Outcome
Appeal dismissed
Legal Topics
Statutory Construction of New Roads and Street Works Act 1991, Arbitrability of Compensation Claims Under Section 82(1)(b), Scope of Mandatory Arbitration Under Section 96(3), Distinction Between Compensation and Recovery of Expenses
Statutory Interpretation Arbitration Commercial Law Statutory Construction of New Roads and Street Works Act 1991 Arbitrability of Compensation Claims Under Section 82(1)(b) Scope of Mandatory Arbitration Under Section 96(3) Distinction Between Compensation and Recovery of Expenses

Case Brief

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Parties

CADENT GAS LIMITED

Claimant/respondent

CITYFIBRE LIMITED

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment Setting Aside Partial Arbitral Award

Legal Issues

  1. 1 Whether claims under section 82(1)(b) of the New Roads and Street Works Act 1991 are subject to mandatory arbitration under section 96(3)
  2. 2 Whether section 82(1)(b) is a provision 'expressed as conferring a right to compensation' and thus excluded from arbitration by section 96(3)[2]

Ratio Decidendi

Claims under section 82(1)(b) of the New Roads and Street Works Act 1991 arise under a provision 'expressed as conferring a right to compensation' due to the use of the phrase 'shall compensate', and are therefore excluded from the mandatory arbitration regime by section 96(3)[2]; such disputes must be litigated in court, not arbitrated.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; High Court order setting aside partial arbitral award upheld