Herbosh -Kiere Marine Contractors Ltd v Dover Harbour Board [2012] EWHC 84 (TCC) (26 January 2012)

Herbosh -Kiere Marine Contractors Ltd v Dover Harbour Board [2012] EWHC 84 (TCC) (26 January 2012)

The adjudicator exceeded his jurisdiction and materially breached the rules of natural justice by deciding the quantum of delay compensation using a composite rate methodology not advanced by either party and without giving the parties an opportunity to address it, resulting in a materially different outcome. The dispute referred was limited to assessment on a resource-by-resource basis, and the adjudicator's approach was outside the scope of the dispute and procedurally unfair.

Citation
[2012] EWHC 84 (TCC)
Parties
Claimant: Herbosch-Kiere Marine Contractors Limited; Defendant: Dover Harbour Board
Jurisdiction
England and Wales
Judgment Date
26 January 2012
Procedural Posture
Commercial Construction Contract Enforcement / Application for Summary Judgment to Enforce Adjudicator's Decision
Outcome
Claim dismissed
Legal Topics
Adjudication Enforcement, Jurisdiction of Adjudicator, Natural Justice, Final Account Disputes, Delay and Disruption Claims
Construction Law Contract Law Civil Procedure Adjudication Enforcement Jurisdiction of Adjudicator Natural Justice Final Account Disputes Delay and Disruption Claims

Case Brief

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Parties

Herbosch-Kiere Marine Contractors Limited

Claimant

Dover Harbour Board

Defendant

Procedural Posture

Commercial Construction Contract Enforcement / Application for Summary Judgment to Enforce Adjudicator's Decision

Legal Issues

  1. 1 Whether the adjudicator exceeded his jurisdiction by adopting a method of assessment not argued by either party
  2. 2 Whether there was a material breach of natural justice by the adjudicator deciding on a basis not put to the parties
  3. 3 Whether the adjudicator's decision should be enforced despite alleged errors

Ratio Decidendi

The adjudicator exceeded his jurisdiction and materially breached the rules of natural justice by deciding the quantum of delay compensation using a composite rate methodology not advanced by either party and without giving the parties an opportunity to address it, resulting in a materially different outcome. The dispute referred was limited to assessment on a resource-by-resource basis, and the adjudicator's approach was outside the scope of the dispute and procedurally unfair.

Court Disposition

Claim dismissed

Orders

  • HKM's claim for enforcement of the adjudicator's decision is dismissed.