Vertase FLI Ltd v Squibb Group Ltd [2012] EWHC 3194 (TCC) (13 November 2012)

Vertase FLI Ltd v Squibb Group Ltd [2012] EWHC 3194 (TCC) (13 November 2012)

The adjudicator's finding in Adjudication No 1 that Vertase was not entitled to deduct liquidated damages was based on both the absence of a withholding notice and the absence of any liability under the main contract. This finding was final and binding until determined by litigation or arbitration, and could not be revisited or changed in Adjudication No 2. Therefore, Vertase's application to enforce the decision in Adjudication No 2 regarding the £105,000 fails.

Citation
[2012] EWHC 3194 (TCC)
Parties
Claimant: Vertase F. L. I. Limited; Defendant: Squibb Group Limited
Jurisdiction
England and Wales
Judgment Date
13 November 2012
Procedural Posture
Application for Summary Judgment / Judgment on Application to Enforce Adjudicator's Decision
Outcome
Application dismissed
Legal Topics
Adjudication Enforcement, Liquidated Damages, Issue Estoppel, Extension of Time, Withholding Notice Requirements
Construction Law Contract Law Adjudication Enforcement Liquidated Damages Issue Estoppel Extension of Time Withholding Notice Requirements

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Parties

Vertase F. L. I. Limited

Claimant

Squibb Group Limited

Defendant

Procedural Posture

Application for Summary Judgment / Judgment on Application to Enforce Adjudicator's Decision

Legal Issues

  1. 1 Whether the adjudicator in Adjudication No 2 was entitled to revisit and change a finding made in Adjudication No 1 regarding Vertase's entitlement to liquidated damages
  2. 2 Whether the absence of loss under the main contract precluded Vertase from claiming liquidated damages under the sub-contract
  3. 3 Whether the same dispute was referred in both adjudications, thus barring reconsideration

Ratio Decidendi

The adjudicator's finding in Adjudication No 1 that Vertase was not entitled to deduct liquidated damages was based on both the absence of a withholding notice and the absence of any liability under the main contract. This finding was final and binding until determined by litigation or arbitration, and could not be revisited or changed in Adjudication No 2. Therefore, Vertase's application to enforce the decision in Adjudication No 2 regarding the £105,000 fails.

Court Disposition

Application dismissed

Orders

  • Vertase's application to enforce the decision in Adjudication No 2 insofar as it relates to the £105,000 is dismissed.