Penten Group Ltd v Spartafield Ltd [2016] EWHC 317 (TCC) (18 February 2016)

Penten Group Ltd v Spartafield Ltd [2016] EWHC 317 (TCC) (18 February 2016)

The adjudicator in Adjudication 1 had jurisdiction to decide that the contract was governed by the letter of intent, as the notice of adjudication required a determination of the existence and terms of the contract. This decision is binding on the parties unless and until challenged in litigation, and a subsequent adjudicator cannot revisit issues already decided.

Citation
[2016] EWHC 317 (TCC)
Parties
Claimant: Penten Group Ltd; Defendant: Spartafield Ltd
Jurisdiction
England and Wales
Judgment Date
18 February 2016
Procedural Posture
Part 8 Claim (construction Adjudication Enforcement) / Judgment After Hearing
Outcome
Declarations granted in part; principal issue decided in favour of Penten Group Ltd.
Legal Topics
Adjudication Enforcement, Jurisdiction of Adjudicator, Letter of Intent, Serial Adjudication, Binding Nature of Adjudicator's Decision
Construction Law Contract Law Civil Procedure Adjudication Enforcement Jurisdiction of Adjudicator Letter of Intent Serial Adjudication Binding Nature of Adjudicator's Decision

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Parties

Penten Group Ltd

Claimant

Spartafield Ltd

Defendant

Procedural Posture

Part 8 Claim (construction Adjudication Enforcement) / Judgment After Hearing

Legal Issues

  1. 1 Whether the adjudicator in Adjudication 1 had jurisdiction to decide that the contract was governed by the letter of intent rather than the JCT ICD form
  2. 2 Whether the decision in Adjudication 1 is binding on the parties until challenged in litigation
  3. 3 Whether a subsequent adjudicator can revisit issues already decided in Adjudication 1

Ratio Decidendi

The adjudicator in Adjudication 1 had jurisdiction to decide that the contract was governed by the letter of intent, as the notice of adjudication required a determination of the existence and terms of the contract. This decision is binding on the parties unless and until challenged in litigation, and a subsequent adjudicator cannot revisit issues already decided.

Court Disposition

Declarations granted in part; principal issue decided in favour of Penten Group Ltd.

Orders

  • Unless and until challenged in litigation, the parties are bound by the decision in Adjudication 1 that the contract between them was governed by the letter of intent and not the ICD terms.