Peterborough City Council v Enterprise Managed Services Ltd

Peterborough City Council v Enterprise Managed Services Ltd

The contract required disputes to be referred to adjudication and amicable settlement before litigation. The adjudication provisions were enforceable, and the Council had not made out a sufficiently compelling case to displace the presumption in favour of the contractual dispute resolution procedure. Accordingly, the action must be stayed.

Parties
Claimant: Peterborough City Council; Defendant: Enterprise Managed Services Ltd
Jurisdiction
England and Wales
Judgment Date
10 October 2014
Procedural Posture
Application for Stay of Proceedings / Interlocutory Application
Outcome
Application granted; proceedings stayed.
Legal Topics
Dispute Resolution Clauses, Adjudication, Stay of Proceedings, Interpretation of FIDIC Contracts
Contract Law Construction Law Dispute Resolution Clauses Adjudication Stay of Proceedings Interpretation of FIDIC Contracts

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Parties

Peterborough City Council

Claimant

Enterprise Managed Services Ltd

Defendant

Procedural Posture

Application for Stay of Proceedings / Interlocutory Application

Legal Issues

  1. 1 Whether the contract required disputes to be referred to adjudication as a precondition to litigation
  2. 2 Whether the adjudication provisions in the contract are enforceable
  3. 3 Whether the court should exercise its discretion to stay the proceedings

Ratio Decidendi

The contract required disputes to be referred to adjudication and amicable settlement before litigation. The adjudication provisions were enforceable, and the Council had not made out a sufficiently compelling case to displace the presumption in favour of the contractual dispute resolution procedure. Accordingly, the action must be stayed.

Court Disposition

Application granted; proceedings stayed.

Orders

  • The action is stayed pending resolution of the dispute in accordance with the contractual adjudication and amicable settlement procedures.