Manor Asset Ltd v Demolition Services Ltd (Rev 1) [2016] EWHC 222 (TCC) (15 February 2016)

Manor Asset Ltd v Demolition Services Ltd (Rev 1) [2016] EWHC 222 (TCC) (15 February 2016)

The contract amendment required payment within 72 hours of receipt of invoice following achievement of a milestone. The parties are taken to have impliedly agreed that the prescribed period for service of a pay less notice is nil, allowing MAL to serve a pay less notice at any time within the 72-hour period. The adjudicator's decision was not unenforceable for breach of natural justice, and the payment provisions, as construed, comply with statutory requirements.

Citation
[2016] EWHC 222 (TCC)
Parties
Claimant: Manor Asset Limited; Defendant: Demolition Services Limited
Jurisdiction
England and Wales
Judgment Date
15 February 2016
Procedural Posture
Part 8 Proceedings / Judgment on Enforceability of Adjudicator's Decision and Declaration of Payment Date
Outcome
Declaration granted as to final date for payment; adjudicator's decision enforceable; summary judgment for DSL.
Legal Topics
Adjudication Enforcement, Natural Justice, Payment Provisions, Implied Terms, Interpretation of Contract
Construction Law Contract Law Adjudication Enforcement Natural Justice Payment Provisions Implied Terms Interpretation of Contract

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Parties

Manor Asset Limited

Claimant

Demolition Services Limited

Defendant

Procedural Posture

Part 8 Proceedings / Judgment on Enforceability of Adjudicator's Decision and Declaration of Payment Date

Legal Issues

  1. 1 Whether the adjudicator's decision is unenforceable due to breach of natural justice
  2. 2 Determination of the final date for payment under the amended contract
  3. 3 Compliance of contract amendment with statutory requirements for payment and pay less notices

Ratio Decidendi

The contract amendment required payment within 72 hours of receipt of invoice following achievement of a milestone. The parties are taken to have impliedly agreed that the prescribed period for service of a pay less notice is nil, allowing MAL to serve a pay less notice at any time within the 72-hour period. The adjudicator's decision was not unenforceable for breach of natural justice, and the payment provisions, as construed, comply with statutory requirements.

Court Disposition

Declaration granted as to final date for payment; adjudicator's decision enforceable; summary judgment for DSL.

Orders

  • Declaration that the final date for payment is 72 hours after receipt by MAL of DSL's invoice following achievement of a milestone.
  • MAL may serve a pay less notice at any time within the 72-hour period.