Wales And West Utilities Ltd v PPS Pipeline Systems GmbH

Wales And West Utilities Ltd v PPS Pipeline Systems GmbH

The adjudicator had jurisdiction to decide the Rockguard issue in Adjudication No 2 because it was part of the crystallised dispute as evidenced by the parties’ correspondence. The decision in Adjudication No 3 was enforceable, and in any event, Wales, by making unqualified payments of the sums awarded and the adjudicator’s fees, elected to treat the decision as valid and enforceable. Wales cannot now challenge the enforceability of the adjudicator’s decisions, though it retains rights in arbitration.

Parties
Claimant: Wales and West Utilities Limited; Defendant: PPS Pipeline Systems GmbH
Jurisdiction
England and Wales
Judgment Date
23 January 2014
Procedural Posture
Civil (construction Contract Dispute) / Judgment on Part 8 Proceedings and Arbitration Claim
Outcome
Judgment for PPS (Defendant) on Part 8 proceedings; Judgment by consent for Wales (Claimant) on Arbitration Claim (appointment of arbitrator)
Legal Topics
Adjudication Enforcement, Jurisdiction of Adjudicator, Compensation Events, Election and Waiver, Costs
Construction Law Contract Law Arbitration Adjudication Enforcement Jurisdiction of Adjudicator Compensation Events Election and Waiver Costs

Case Brief

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Parties

Wales and West Utilities Limited

Claimant

PPS Pipeline Systems GmbH

Defendant

Procedural Posture

Civil (construction Contract Dispute) / Judgment on Part 8 Proceedings and Arbitration Claim

Legal Issues

  1. 1 Whether the adjudicator had jurisdiction to decide on the Rockguard issue in Adjudication No 2
  2. 2 Whether the decision in Adjudication No 3 was enforceable
  3. 3 Whether Wales elected to treat the adjudicator’s decision as valid by making unqualified payments

Ratio Decidendi

The adjudicator had jurisdiction to decide the Rockguard issue in Adjudication No 2 because it was part of the crystallised dispute as evidenced by the parties’ correspondence. The decision in Adjudication No 3 was enforceable, and in any event, Wales, by making unqualified payments of the sums awarded and the adjudicator’s fees, elected to treat the decision as valid and enforceable. Wales cannot now challenge the enforceability of the adjudicator’s decisions, though it retains rights in arbitration.

Court Disposition

Judgment for PPS (Defendant) on Part 8 proceedings; Judgment by consent for Wales (Claimant) on Arbitration Claim (appointment of arbitrator)

Orders

  • PPS awarded costs of £16,000 for Part 8 proceedings, less £3,000 awarded to Wales for Arbitration Claim, resulting in net costs of £13,000 to be paid by Wales to PPS within 14 days.
  • Chairman of TECBAR to appoint the arbitrator.