Manor Asset Ltd v Demolition Services Ltd (Rev 1)

Manor Asset Ltd v Demolition Services Ltd (Rev 1)

The adjudicator's decision was not vitiated by breach of natural justice as MAL had the opportunity to present its case and the adjudicator considered the relevant evidence. The payment provisions, as amended, provided for payment within 72 hours of invoice following achievement of a milestone, and the parties must be taken to have impliedly agreed that the prescribed period for serving a pay less notice was nil, allowing service at any time within the 72-hour period. The pay less notice served by MAL was out of time and invalid. DSL is entitled to summary judgment.

Parties
Claimant: Manor Asset Limited; Defendant: Demolition Services Limited
Jurisdiction
England and Wales
Judgment Date
15 February 2016
Procedural Posture
Part 8 Claim and Summary Judgment Application / Judgment After Hearing
Outcome
Summary judgment for the defendant; declaration granted
Legal Topics
Adjudication Enforcement, Natural Justice, Payment Provisions in Construction Contracts, Interpretation and Implication of Contract Terms
Construction Law Contract Law Adjudication Enforcement Natural Justice Payment Provisions in Construction Contracts Interpretation and Implication of Contract Terms

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Parties

Manor Asset Limited

Claimant

Demolition Services Limited

Defendant

Procedural Posture

Part 8 Claim and Summary Judgment Application / Judgment After Hearing

Legal Issues

  1. 1 Whether the adjudicator's decision was unenforceable due to breach of natural justice
  2. 2 Proper construction of the payment provisions and final date for payment under the amended contract
  3. 3 Whether the pay less notice was valid and served in time

Ratio Decidendi

The adjudicator's decision was not vitiated by breach of natural justice as MAL had the opportunity to present its case and the adjudicator considered the relevant evidence. The payment provisions, as amended, provided for payment within 72 hours of invoice following achievement of a milestone, and the parties must be taken to have impliedly agreed that the prescribed period for serving a pay less notice was nil, allowing service at any time within the 72-hour period. The pay less notice served by MAL was out of time and invalid. DSL is entitled to summary judgment.

Court Disposition

Summary judgment for the defendant; declaration granted

Orders

  • DSL is entitled to summary judgment enforcing the adjudicator's decision.
  • Declaration: As a result of the amendment, the final date for payment is 72 hours after receipt by MAL of DSL’s invoice following achievement of a milestone. The due date for payment is the date when the milestone is achieved. The prescribed period for service by MAL of any pay less notice is nil (it can be served...