Joinery Plus Ltd (In Administration) v Laing Ltd

Joinery Plus Ltd (In Administration) v Laing Ltd

The adjudicator's decision was a nullity because it was made by reference to the wrong contract conditions (JCT Works Contract instead of DOM/2 DOM/2 conditions), failed to answer the question referred, and applied inapplicable provisions. The errors were fundamental, went to jurisdiction, and were incapable of correction. Joinery did not affirm the decision by accepting payment, as it was accepted on account with reservation of rights. Joinery is entitled to refer the dispute to a new adjudication, and Laing is not entitled to repayment as a precondition or by counterclaim, given Joinery's equitable set-off and administration status.

Parties
Claimant: Joinery Plus Limited (in administration); Defendant: Laing Limited
Jurisdiction
England and Wales
Judgment Date
16 January 2003
Procedural Posture
Civil / Judgment
Outcome
Declaration granted; adjudicator's decision declared a nullity; Joinery entitled to fresh adjudication; Laing's application for repayment refused.
Legal Topics
Adjudication, Jurisdiction, Restitution, Insolvency, Declaratory Relief
Construction Law Contract Law Adjudication Jurisdiction Restitution Insolvency Declaratory Relief

Case Brief

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Parties

Joinery Plus Limited (in administration)

Claimant

Laing Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the adjudicator's decision dated 6 August 2001 was a nullity for being made under the wrong contract conditions
  2. 2 Whether Joinery affirmed the adjudicator's decision by accepting payment
  3. 3 Whether Joinery may start a fresh adjudication on the same disputes

Ratio Decidendi

The adjudicator's decision was a nullity because it was made by reference to the wrong contract conditions (JCT Works Contract instead of DOM/2 DOM/2 conditions), failed to answer the question referred, and applied inapplicable provisions. The errors were fundamental, went to jurisdiction, and were incapable of correction. Joinery did not affirm the decision by accepting payment, as it was accepted on account with reservation of rights. Joinery is entitled to refer the dispute to a new adjudication, and Laing is not entitled to repayment as a precondition or by counterclaim, given Joinery's equitable set-off and administration status.

Court Disposition

Declaration granted; adjudicator's decision declared a nullity; Joinery entitled to fresh adjudication; Laing's application for repayment refused.

Orders

  • The adjudicator's decision dated 6 August 2001 is a nullity and given without jurisdiction.
  • Joinery may serve a new Notice of Adjudication regarding the Stakis London Metropole Hotel subcontract.