HS Works Ltd v Enterprise Managed Services Ltd

HS Works Ltd v Enterprise Managed Services Ltd

Both adjudicators' decisions are valid and enforceable. The First Adjudication decision is enforceable because the adjudicator was correct to confine his decision to the absence of a valid withholding notice, and was not required to address the merits of the contra charges once the primary case was upheld. The Second Adjudication decision is enforceable as the dispute had crystallised, the adjudicator acted fairly, and the process was not so complex as to render the decision invalid. The court must give effect to both decisions, reflecting their net effect, as neither party is in financial difficulty and there is no reason to favour one decision over the other.

Parties
Claimant: HS Works Limited; Defendant: Enterprise Managed Services Limited
Jurisdiction
England and Wales
Judgment Date
08 April 2009
Procedural Posture
Civil (construction/commercial) / Judgment on Summary Judgment Applications to Enforce Adjudicators' Decisions
Outcome
Both adjudicators' decisions are enforced; orders to reflect the net effect of the two decisions.
Legal Topics
Adjudication Enforcement, Withholding Notices, Natural Justice, Jurisdiction of Adjudicator, Final Account Valuation
Construction Law Contract Law Adjudication Enforcement Withholding Notices Natural Justice Jurisdiction of Adjudicator Final Account Valuation

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Parties

HS Works Limited

Claimant

Enterprise Managed Services Limited

Defendant

Procedural Posture

Civil (construction/commercial) / Judgment on Summary Judgment Applications to Enforce Adjudicators' Decisions

Legal Issues

  1. 1 Whether the adjudicators' decisions are valid and enforceable
  2. 2 Whether the adjudicator in the First Adjudication failed to address the merits of contra charges and thus breached natural justice or exceeded jurisdiction
  3. 3 Whether the dispute in the Second Adjudication had crystallised

Ratio Decidendi

Both adjudicators' decisions are valid and enforceable. The First Adjudication decision is enforceable because the adjudicator was correct to confine his decision to the absence of a valid withholding notice, and was not required to address the merits of the contra charges once the primary case was upheld. The Second Adjudication decision is enforceable as the dispute had crystallised, the adjudicator acted fairly, and the process was not so complex as to render the decision invalid. The court must give effect to both decisions, reflecting their net effect, as neither party is in financial difficulty and there is no reason to favour one decision over the other.

Court Disposition

Both adjudicators' decisions are enforced; orders to reflect the net effect of the two decisions.

Orders

  • Enterprise Managed Services Limited to pay HS Works Limited £1,835,252.26 plus VAT, interest of £59,281.17 up to 2 February 2009 and £175.98 per day thereafter until 12 March 2009, and adjudicator's fees of £13,127.10 (inclusive of VAT) within 14 days of 2 February 2009.
  • Each party to pay half of the Second Adjudicator's fees (£12,411.69 each).