ISG Retail Ltd v FK Construction Ltd [2024] EWHC 1713 (TCC) (28 May 2024)

ISG Retail Ltd v FK Construction Ltd [2024] EWHC 1713 (TCC) (28 May 2024)

The court found that the adjudicator made an incontrovertible error in quantifying damages for the rooflight works by double-counting sums, resulting in an overvaluation. This was a short, self-contained issue requiring no oral evidence and was unconscionable for the court to ignore. The court reduced the enforceable sum accordingly, applying the principle from Hutton Construction Ltd v Wilson Properties (London) Ltd.

Citation
[2024] EWHC 1713 (TCC)
Parties
Claimant: ISG Retail Ltd; Defendant: FK Construction Ltd
Jurisdiction
England and Wales
Judgment Date
28 May 2024
Procedural Posture
Summary Judgment Application (adjudication Enforcement) / Judgment on Summary Judgment Application
Outcome
Claimant's application for summary judgment granted in part; judgment for claimant in reduced sums reflecting correction of adjudicator's error; costs awarded to claimant; no order on consolidation application.
Legal Topics
Adjudication Enforcement, Summary Judgment, Quantification of Damages, Natural Justice, Error of Law, Severability of Adjudicator's Decision
Construction Law Civil Procedure Adjudication Enforcement Summary Judgment Quantification of Damages Natural Justice Error of Law Severability of Adjudicator's Decision

Case Brief

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Parties

ISG Retail Ltd

Claimant

FK Construction Ltd

Defendant

Procedural Posture

Summary Judgment Application (adjudication Enforcement) / Judgment on Summary Judgment Application

Legal Issues

  1. 1 Whether the court can correct an incontrovertible error in the adjudicator's approach to quantification of damages on an application for summary judgment
  2. 2 Whether an issue of law is capable of being raised by way of partial defence to the summary enforcement of an adjudicator's decision
  3. 3 Whether the adjudicator's decision is severable

Ratio Decidendi

The court found that the adjudicator made an incontrovertible error in quantifying damages for the rooflight works by double-counting sums, resulting in an overvaluation. This was a short, self-contained issue requiring no oral evidence and was unconscionable for the court to ignore. The court reduced the enforceable sum accordingly, applying the principle from Hutton Construction Ltd v Wilson Properties (London) Ltd.

Court Disposition

Claimant's application for summary judgment granted in part; judgment for claimant in reduced sums reflecting correction of adjudicator's error; costs awarded to claimant; no order on consolidation application.

Orders

  • Judgment for claimant in the sum of £120,713.06 plus interest of £12,236.64 (up to 28 May 2024) and daily interest of £20.67 from 29 May 2024 until payment for the rooflight works.
  • Judgment for claimant in the sum of £191,740.86 plus interest of £9,426.69 (up to 28 May 2024) and daily interest of £48.59 from 29 May 2024 until payment for the pallet store defects.