Aspect Contracts (Asbestos) Ltd v Higgins Construction Plc [2013] EWHC 1322 (TCC) (23 May 2013)

Aspect Contracts (Asbestos) Ltd v Higgins Construction Plc [2013] EWHC 1322 (TCC) (23 May 2013)

The limitation period for a claim to recover sums paid pursuant to an adjudicator's decision runs from the date of payment, not from the original breach or accrual of the underlying cause of action. An implied term exists entitling the paying party to final determination and repayment if successful, and a claim in restitution also arises from the date of payment.

Citation
[2013] EWHC 1322 (TCC)
Parties
Claimant: Aspect Contracts (Asbestos) Limited; Defendant: Higgins Construction PLC
Jurisdiction
England and Wales
Judgment Date
23 May 2013
Procedural Posture
Commercial Construction Dispute / Judgment on Preliminary Issues
Outcome
Aspect's claim is not statute barred; limitation runs from date of payment. Implied term and restitution claim both exist.
Legal Topics
Adjudication, Implied Terms, Limitation Periods, Restitution, Declaratory Relief
Construction Law Contract Law Civil Procedure Adjudication Implied Terms Limitation Periods Restitution Declaratory Relief

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Parties

Aspect Contracts (Asbestos) Limited

Claimant

Higgins Construction PLC

Defendant

Procedural Posture

Commercial Construction Dispute / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether an implied term exists entitling the unsuccessful party in adjudication to have the dispute finally determined by legal proceedings and to repayment if successful
  2. 2 When the limitation period accrues for a claim to recover sums paid pursuant to an adjudicator's decision
  3. 3 Whether a claim for restitution arises from payment made under compulsion of an adjudicator's decision

Ratio Decidendi

The limitation period for a claim to recover sums paid pursuant to an adjudicator's decision runs from the date of payment, not from the original breach or accrual of the underlying cause of action. An implied term exists entitling the paying party to final determination and repayment if successful, and a claim in restitution also arises from the date of payment.

Court Disposition

Aspect's claim is not statute barred; limitation runs from date of payment. Implied term and restitution claim both exist.

Orders

  • Declaration that Aspect is entitled to final determination and repayment if successful
  • Limitation period runs from date of payment for both implied term and restitution claims