R and C Electrical Engineers Ltd v Shaylor Construction Ltd [2012] EWHC 1254 (TCC) (15 May 2012)

R and C Electrical Engineers Ltd v Shaylor Construction Ltd [2012] EWHC 1254 (TCC) (15 May 2012)

The contractual machinery for certification under the Main Contract had not broken down; R&C is not entitled to immediate payment of the sum determined by the Adjudicator. Payment is due only following issue of the Final Certificate and subject to set-off and deduction rights under the contract. The Adjudicator was not misled, and Shaylor retains its contractual rights.

Citation
[2012] EWHC 1254 (TCC)
Parties
Claimant: R AND C ELECTRICAL ENGINEERS LIMITED; Defendant: SHAYLOR CONSTRUCTION LIMITED
Jurisdiction
England and Wales
Judgment Date
15 May 2012
Procedural Posture
Claim for Declaratory and Other Relief Regarding Adjudicator's Decision / Judgment on Application for Immediate Payment
Outcome
Application dismissed
Legal Topics
Adjudication Enforcement, Payment Provisions, Certification Mechanisms, Set Off Rights
Construction Law Contract Law Adjudication Enforcement Payment Provisions Certification Mechanisms Set Off Rights

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Parties

R AND C ELECTRICAL ENGINEERS LIMITED

Claimant

SHAYLOR CONSTRUCTION LIMITED

Defendant

Procedural Posture

Claim for Declaratory and Other Relief Regarding Adjudicator's Decision / Judgment on Application for Immediate Payment

Legal Issues

  1. 1 Has the contractual machinery for certification under the Main Contract broken down?
  2. 2 Is R&C entitled to immediate payment of the sum determined by the Adjudicator?
  3. 3 Is Shaylor entitled to set-off or deduction against the sum determined by the Adjudicator?

Ratio Decidendi

The contractual machinery for certification under the Main Contract had not broken down; R&C is not entitled to immediate payment of the sum determined by the Adjudicator. Payment is due only following issue of the Final Certificate and subject to set-off and deduction rights under the contract. The Adjudicator was not misled, and Shaylor retains its contractual rights.

Court Disposition

Application dismissed

Orders

  • No immediate payment to R&C; payment only after issue of Final Certificate and subject to set-off/deduction
  • Alternative claim for declaration refused