FG Skerritt Ltd v Caledonian Building Systems Ltd [2013] EWHC 1898 (TCC) (03 July 2013)

FG Skerritt Ltd v Caledonian Building Systems Ltd [2013] EWHC 1898 (TCC) (03 July 2013)

Summary judgment is granted to enforce the adjudicator's decision, but enforcement is stayed pending execution and delivery of a satisfactory guarantee from MGL, the parent company, as FGS is insolvent and Caledonian has real grounds for equitable set-off. The stay will be lifted upon delivery of the agreed guarantee and management accounts.

Citation
[2013] EWHC 1898 (TCC)
Parties
Claimant: FG Skerritt Ltd; Defendant: Caledonian Building Systems Ltd
Jurisdiction
England and Wales
Judgment Date
03 July 2013
Procedural Posture
Application for Summary Judgment to Enforce Adjudicator's Decision / Post Adjudication Enforcement; Summary Judgment Hearing
Outcome
Summary judgment granted; enforcement stayed pending provision of guarantee and management accounts.
Legal Topics
Adjudication Enforcement, Stay of Execution, Insolvency Set Off, Guarantee as Security, Equitable Set Off
Construction Law Insolvency Law Civil Procedure Adjudication Enforcement Stay of Execution Insolvency Set Off Guarantee as Security Equitable Set Off

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Parties

FG Skerritt Ltd

Claimant

Caledonian Building Systems Ltd

Defendant

Procedural Posture

Application for Summary Judgment to Enforce Adjudicator's Decision / Post Adjudication Enforcement; Summary Judgment Hearing

Legal Issues

  1. 1 Should summary judgment enforcing the adjudicator's decision be stayed due to claimant's insolvency?
  2. 2 Is a parent company guarantee sufficient to lift the stay?
  3. 3 What is the scope of equitable set-off in this context?

Ratio Decidendi

Summary judgment is granted to enforce the adjudicator's decision, but enforcement is stayed pending execution and delivery of a satisfactory guarantee from MGL, the parent company, as FGS is insolvent and Caledonian has real grounds for equitable set-off. The stay will be lifted upon delivery of the agreed guarantee and management accounts.

Court Disposition

Summary judgment granted; enforcement stayed pending provision of guarantee and management accounts.

Orders

  • Summary judgment for FGS on adjudicator's decision.
  • Stay of enforcement pending execution and delivery of guarantee from MGL and production of management accounts.