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
Summary, issues, holding and outcome
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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
Legal Issues
- 1 Whether the adjudicator's reliance on a contractual clause not raised by the parties constituted a material breach of natural justice
- 2 Whether the adjudicator's decision was unenforceable due to breach of natural justice
- 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.
Full Case Text
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