Galliford Try Building Ltd v Estura Ltd

Galliford Try Building Ltd v Estura Ltd

Summary judgment must be granted to enforce the adjudicator's decision because Estura failed to serve the required notices and raised no valid defence. However, due to the exceptional financial circumstances and risk of manifest injustice, enforcement is stayed above £1.5 million, subject to conditions, to balance the interests of both parties.

Parties
Claimant: Galliford Try Building Ltd; Defendant: Estura Ltd
Jurisdiction
England and Wales
Judgment Date
27 February 2015
Procedural Posture
Civil (construction Contract Dispute) / Application for Summary Judgment to Enforce Adjudicator's Decision
Outcome
Summary judgment granted for the claimant; enforcement stayed above £1.5 million subject to conditions.
Legal Topics
Adjudication Enforcement, Interim Payments, Summary Judgment, Stay of Execution, Payment Notices, Pay Less Notices
Construction Law Contract Law Adjudication Enforcement Interim Payments Summary Judgment Stay of Execution Payment Notices Pay Less Notices

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Parties

Galliford Try Building Ltd

Claimant

Estura Ltd

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Application for Summary Judgment to Enforce Adjudicator's Decision

Legal Issues

  1. 1 Whether summary judgment should be granted to enforce the adjudicator's decision for payment under an interim application where the employer failed to serve payment or pay less notices
  2. 2 Whether enforcement should be stayed due to alleged manifest injustice and the financial position of the defendant

Ratio Decidendi

Summary judgment must be granted to enforce the adjudicator's decision because Estura failed to serve the required notices and raised no valid defence. However, due to the exceptional financial circumstances and risk of manifest injustice, enforcement is stayed above £1.5 million, subject to conditions, to balance the interests of both parties.

Court Disposition

Summary judgment granted for the claimant; enforcement stayed above £1.5 million subject to conditions.

Orders

  • Summary judgment for Galliford Try Building Ltd in the sum of £3,928,227.04 plus VAT (where applicable and to be assessed), plus interest of £33,739.78 and further interest at £591.92 per day until payment.
  • Enforcement of the judgment is stayed above £1,500,000 until further order, subject to conditions regarding VAT invoice and possible variation if Estura's financial position changes or Galliford Try serves its Final Statement.