Enterprise Managed Services Ltd v McFadden Utilities Ltd

Enterprise Managed Services Ltd v McFadden Utilities Ltd

The only claim assignable in insolvency is the net balance after set-off under Rule 4.90; individual contract claims cease to exist and cannot be adjudicated. The adjudicator lacks jurisdiction because the referred claim is not extant, and the dispute had not crystallised between the parties prior to the notice of adjudication.

Parties
Claimant: Enterprise Managed Services Limited; Defendant: Tony McFadden Utilities Limited
Jurisdiction
England and Wales
Judgment Date
02 December 2009
Procedural Posture
Civil / Judgment
Outcome
Adjudicator lacks jurisdiction; adjudication aborted.
Legal Topics
Assignment of Claims, Adjudication Jurisdiction, Novation, Set Off Under Insolvency, Prohibition on Assignment
Insolvency Construction Law Contract Law Assignment of Claims Adjudication Jurisdiction Novation Set Off Under Insolvency Prohibition on Assignment

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Parties

Enterprise Managed Services Limited

Claimant

Tony McFadden Utilities Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the NLSDA Sub-Contract was novated in favour of Enterprise
  2. 2 What rights and liabilities were assigned under the Deed of Assignment
  3. 3 Validity of the assignment under contract and insolvency law

Ratio Decidendi

The only claim assignable in insolvency is the net balance after set-off under Rule 4.90; individual contract claims cease to exist and cannot be adjudicated. The adjudicator lacks jurisdiction because the referred claim is not extant, and the dispute had not crystallised between the parties prior to the notice of adjudication.

Court Disposition

Adjudicator lacks jurisdiction; adjudication aborted.

Orders

  • Adjudication process halted.
  • Declaration that adjudicator does not have requisite jurisdiction.