Penten Group Ltd v Spartafield Ltd

Penten Group Ltd v Spartafield Ltd

The adjudicator in Adjudication 1 had jurisdiction to decide the contract was governed by the letter of intent, as this was necessary to resolve the dispute referred. That decision is binding on the parties unless and until challenged in litigation. A subsequent adjudicator cannot revisit issues already decided.

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 on Declarations Regarding Enforceability and Jurisdiction
Outcome
Declaration granted in part for claimant; adjudicator's decision on contract terms is binding unless challenged in litigation.
Legal Topics
Adjudication Enforcement, Jurisdiction of Adjudicator, Contract Formation, Letter of Intent, Res Judicata in Adjudication
Construction Law Contract Law Adjudication Enforcement Jurisdiction of Adjudicator Contract Formation Letter of Intent Res Judicata in Adjudication

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Parties

Penten Group Ltd

Claimant

Spartafield Ltd

Defendant

Procedural Posture

Part 8 Claim (construction Adjudication Enforcement) / Judgment on Declarations Regarding Enforceability and Jurisdiction

Legal Issues

  1. 1 Whether the adjudicator in Adjudication 1 had jurisdiction to decide the contract was governed by the letter of intent
  2. 2 Whether the decision in Adjudication 1 is binding and enforceable
  3. 3 Whether a subsequent adjudicator can revisit issues already decided

Ratio Decidendi

The adjudicator in Adjudication 1 had jurisdiction to decide the contract was governed by the letter of intent, as this was necessary to resolve the dispute referred. That decision is binding on the parties unless and until challenged in litigation. A subsequent adjudicator cannot revisit issues already decided.

Court Disposition

Declaration granted in part for claimant; adjudicator's decision on contract terms is binding unless challenged in litigation.

Orders

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