Vertase FLI Ltd v Squibb Group Ltd

Vertase FLI Ltd v Squibb Group Ltd

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 the adjudicator was not entitled to revisit or change it in Adjudication No 2. Therefore, Vertase's application to enforce the decision in Adjudication No 2 regarding the £105,000 fails.

Parties
Claimant: Vertase F. L. I. Limited; Defendant: Squibb Group Limited
Jurisdiction
England and Wales
Judgment Date
13 November 2012
Procedural Posture
Commercial Construction Dispute / Application for Summary Judgment to Enforce Adjudicator's Decision
Outcome
Application dismissed
Legal Topics
Adjudication Enforcement, Liquidated Damages, Withholding Notice, Jurisdiction of Adjudicator
Construction Law Contract Law Adjudication Enforcement Liquidated Damages Withholding Notice Jurisdiction of Adjudicator

Case Brief

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Parties

Vertase F. L. I. Limited

Claimant

Squibb Group Limited

Defendant

Procedural Posture

Commercial Construction Dispute / Application for Summary Judgment 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
  3. 3 Whether the absence of a withholding notice was fatal to Vertase's claim for liquidated damages

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 the adjudicator was not entitled to revisit or change it 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.
  • The court will hear counsel on costs or the form of the order if not agreed.