Systech International Ltd v PC Harrington Contractors Ltd

Systech International Ltd v PC Harrington Contractors Ltd

There has not been a total failure of consideration because the adjudicator performed substantial services in the discharge of his role, including addressing jurisdictional objections, reviewing submissions, and conducting the adjudication process, even though the decisions were ultimately unenforceable due to breaches of natural justice. The contract called for the provision of adjudication services, not merely an enforceable decision, and partial performance entitles the adjudicator to fees.

Parties
Claimant: Systech International Limited; Defendant: PC Harrington Contractors Limited
Jurisdiction
England and Wales
Judgment Date
27 October 2011
Procedural Posture
Civil / Judgment
Outcome
Judgment for the Claimant (Systech International Limited)
Legal Topics
Adjudicator's Fees, Natural Justice, Failure of Consideration, Enforceability of Adjudicator's Decision
Contract Law Construction Law Adjudicator's Fees Natural Justice Failure of Consideration Enforceability of Adjudicator's Decision

Case Brief

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Parties

Systech International Limited

Claimant

PC Harrington Contractors Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Is an adjudicator entitled to fees where the adjudicator's decision is unenforceable due to breach of natural justice?
  2. 2 Does a total failure of consideration arise in such circumstances?
  3. 3 Are the prior enforcement proceedings binding on the adjudicator or Systech?

Ratio Decidendi

There has not been a total failure of consideration because the adjudicator performed substantial services in the discharge of his role, including addressing jurisdictional objections, reviewing submissions, and conducting the adjudication process, even though the decisions were ultimately unenforceable due to breaches of natural justice. The contract called for the provision of adjudication services, not merely an enforceable decision, and partial performance entitles the adjudicator to fees.

Court Disposition

Judgment for the Claimant (Systech International Limited)

Orders

  • Harrington to pay Systech £22,000 plus VAT for adjudicator's fees