Balfour Beatty Civil Engineering Ltd & Anor v Astec Projects Ltd [2020] EWHC 796 (TCC) (27 February 2020)

Balfour Beatty Civil Engineering Ltd & Anor v Astec Projects Ltd [2020] EWHC 796 (TCC) (27 February 2020)

There is no jurisdictional or discretionary bar to adjudications proceeding in these circumstances, provided that the adjudications together determine the net position between the parties and that adequate security for costs and other protections are put in place. The existence of three contracts does not preclude adjudication, as the net result can be determined across the three adjudications. The injunction is refused subject to conditions ensuring security and procedural safeguards.

Citation
[2020] EWHC 796 (TCC)
Parties
Claimant: Balfour Beatty Civil Engineering Limited; Claimant: Balfour Beatty Group Limited; Defendant: Astec Projects Limited (In Liquidation)
Jurisdiction
England and Wales
Judgment Date
27 February 2020
Procedural Posture
Application for Injunction / Judgment on Application for Interim Injunction
Outcome
Injunction refused; adjudications permitted to proceed subject to conditions.
Legal Topics
Adjudication in Construction Contracts, Injunctions, Insolvent Companies and Adjudication, Security for Costs
Construction Law Insolvency Law Civil Procedure Adjudication in Construction Contracts Injunctions Insolvent Companies and Adjudication Security for Costs

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Parties

Balfour Beatty Civil Engineering Limited

Claimant

Balfour Beatty Group Limited

Claimant

Astec Projects Limited (In Liquidation)

Defendant

Procedural Posture

Application for Injunction / Judgment on Application for Interim Injunction

Legal Issues

  1. 1 Whether adjudications can proceed where the claimant is an insolvent company in liquidation
  2. 2 Whether multiple adjudications under separate contracts preclude adjudication in insolvency
  3. 3 What security for costs and other protections are required for adjudications to proceed in these circumstances

Ratio Decidendi

There is no jurisdictional or discretionary bar to adjudications proceeding in these circumstances, provided that the adjudications together determine the net position between the parties and that adequate security for costs and other protections are put in place. The existence of three contracts does not preclude adjudication, as the net result can be determined across the three adjudications. The injunction is refused subject to conditions ensuring security and procedural safeguards.

Court Disposition

Injunction refused; adjudications permitted to proceed subject to conditions.

Orders

  • Notices for the two remaining adjudications to be issued within 21 days.
  • Same adjudicator to be appointed for all three adjudications.