ISG Construction Ltd v Seevic College [2014] EWHC 4007 (TCC) (03 December 2014)

ISG Construction Ltd v Seevic College [2014] EWHC 4007 (TCC) (03 December 2014)

Where an employer fails to serve a payment or pay less notice in response to a contractor's interim application, the amount claimed becomes due and is deemed agreed for that payment cycle; the employer cannot subsequently refer to adjudication the valuation of works for that same period, and any such adjudicator's decision is invalid for want of jurisdiction as it concerns a dispute already determined.

Citation
[2014] EWHC 4007 (TCC)
Parties
Claimant: ISG Construction Ltd; Defendant: Seevic College
Jurisdiction
England and Wales
Judgment Date
03 December 2014
Procedural Posture
Application for Summary Judgment and Declaratory Relief / Post Adjudication, Enforcement and Jurisdiction Challenge
Outcome
Summary judgment granted for ISG; declaration that Adjudication No 2 decision is invalid for want of jurisdiction.
Legal Topics
Adjudication Enforcement, Interim Payment Provisions, Jurisdiction of Adjudicator, Payment Notice Regime, Summary Judgment
Construction Law Contract Law Adjudication Enforcement Interim Payment Provisions Jurisdiction of Adjudicator Payment Notice Regime Summary Judgment

Case Brief

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Parties

ISG Construction Ltd

Claimant

Seevic College

Defendant

Procedural Posture

Application for Summary Judgment and Declaratory Relief / Post Adjudication, Enforcement and Jurisdiction Challenge

Legal Issues

  1. 1 Whether the adjudicator's decision in Adjudication No 2 was invalid for want of jurisdiction as it concerned the same or substantially the same dispute as Adjudication No 1
  2. 2 Whether ISG is entitled to summary judgment enforcing Adjudication No 1
  3. 3 Whether the employer can seek a repayment or revaluation in the absence of payment or pay less notices

Ratio Decidendi

Where an employer fails to serve a payment or pay less notice in response to a contractor's interim application, the amount claimed becomes due and is deemed agreed for that payment cycle; the employer cannot subsequently refer to adjudication the valuation of works for that same period, and any such adjudicator's decision is invalid for want of jurisdiction as it concerns a dispute already determined.

Court Disposition

Summary judgment granted for ISG; declaration that Adjudication No 2 decision is invalid for want of jurisdiction.

Orders

  • ISG is entitled to enforce the decision in Adjudication No 1 for £1,097,696.29 plus interest.
  • Declaration that the decision in Adjudication No 2 is invalid for want of jurisdiction.