ABB Ltd v Bam Nuttall Ltd [2013] EWHC 1983 (TCC) (12 July 2013)

ABB Ltd v Bam Nuttall Ltd [2013] EWHC 1983 (TCC) (12 July 2013)

The adjudicator's reliance on Clause 11.1A, which was not raised by the parties or put to them for comment, constituted a serious and material breach of the rules of natural justice. This breach went to an issue of considerable potential importance and possibly decisive to the outcome. The adjudicator's decision was therefore unenforceable.

Citation
[2013] EWHC 1983 (TCC)
Parties
Claimant: ABB Limited; Defendant: BAM Nuttall Limited
Jurisdiction
England and Wales
Judgment Date
12 July 2013
Procedural Posture
Part 8 Claim and Summary Judgment Application / High Court (tcc) Judgment on Enforceability of Adjudicator's Decision
Outcome
Declaration granted that the adjudicator's decision is unenforceable; summary judgment application dismissed.
Legal Topics
Adjudication Enforcement, Natural Justice, Material Breach, Contractual Interpretation, Waiver, Compensation Events

Case Brief

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Parties

ABB Limited

Claimant

BAM Nuttall Limited

Defendant

Procedural Posture

Part 8 Claim and Summary Judgment Application / High Court (tcc) Judgment on Enforceability of Adjudicator's Decision

  1. 1 Whether the adjudicator's reliance on a contractual clause not raised by the parties constituted a material breach of natural justice
  2. 2 Whether the adjudicator's decision was unenforceable due to breach of natural justice
  3. 3 Whether there was a binding agreement on the scope of the £1.5 million lump sum for design work

Ratio Decidendi

The adjudicator's reliance on Clause 11.1A, which was not raised by the parties or put to them for comment, constituted a serious and material breach of the rules of natural justice. This breach went to an issue of considerable potential importance and possibly decisive to the outcome. The adjudicator's decision was therefore unenforceable.

Court Disposition

Declaration granted that the adjudicator's decision is unenforceable; summary judgment application dismissed.

Orders

  • ABB is entitled to a declaration that the adjudicator's decision is unenforceable due to material breach of natural justice.
  • BAM's application for summary judgment is dismissed.