Toppan Holdings Ltd & Anor v Simply Construct (UK) LLP [2021] EWHC 2110 (TCC) (27 July 2021)

Toppan Holdings Ltd & Anor v Simply Construct (UK) LLP [2021] EWHC 2110 (TCC) (27 July 2021)

The Abbey Collateral Warranty, executed four years after practical completion and after remedial works by another contractor, is not a construction contract under section 104 of the Act; therefore, the adjudicator lacked jurisdiction in the Abbey adjudication. The adjudicator had power to award interest in the Toppan adjudication due to absence of jurisdictional objection. Toppan is entitled to recover VAT as established by evidence. Simply's application for a stay of execution fails as Claimants demonstrated sufficient financial strength and credible group support to repay sums if required.

Citation
[2021] EWHC 2110 (TCC)
Parties
Claimant: Toppan Holdings Limited; Claimant: Abbey Healthcare (Mill Hill) Limited; Defendant: Simply Construct (UK) LLP
Jurisdiction
England and Wales
Judgment Date
27 July 2021
Procedural Posture
Application for Summary Judgment to Enforce Adjudication Decisions / Judgment on Enforcement and Stay Application
Outcome
Summary judgment granted in favour of Toppan; Abbey's claim dismissed.
Legal Topics
Adjudication Enforcement, Collateral Warranties, Jurisdiction, Interest Awards, VAT Recovery, Stay of Execution
Construction Law Contract Law Adjudication Enforcement Collateral Warranties Jurisdiction Interest Awards VAT Recovery Stay of Execution

Case Brief

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Parties

Toppan Holdings Limited

Claimant

Abbey Healthcare (Mill Hill) Limited

Claimant

Simply Construct (UK) LLP

Defendant

Procedural Posture

Application for Summary Judgment to Enforce Adjudication Decisions / Judgment on Enforcement and Stay Application

Legal Issues

  1. 1 Whether the Abbey Collateral Warranty is a construction contract under section 104 of the Housing Grants, Construction and Regeneration Act 1996
  2. 2 Whether the adjudicator had power to award interest
  3. 3 Whether Toppan is entitled to recover VAT

Ratio Decidendi

The Abbey Collateral Warranty, executed four years after practical completion and after remedial works by another contractor, is not a construction contract under section 104 of the Act; therefore, the adjudicator lacked jurisdiction in the Abbey adjudication. The adjudicator had power to award interest in the Toppan adjudication due to absence of jurisdictional objection. Toppan is entitled to recover VAT as established by evidence. Simply's application for a stay of execution fails as Claimants demonstrated sufficient financial strength and credible group support to repay sums if required.

Court Disposition

Summary judgment granted in favour of Toppan; Abbey's claim dismissed.

Orders

  • Simply Construct (UK) LLP to pay Toppan Holdings Limited £1,070,342.70 inclusive of VAT as at 1 July 2021, comprising principal, interest, and adjudicator's fees.
  • Abbey Healthcare (Mill Hill) Limited's claim for summary judgment dismissed.