PC Harrington Contractors Ltd v Tyroddy Construction Ltd [2011] EWHC 813 (TCC) (25 March 2011)

PC Harrington Contractors Ltd v Tyroddy Construction Ltd [2011] EWHC 813 (TCC) (25 March 2011)

The adjudicator's decisions are unenforceable due to a material breach of natural justice, as he failed to consider Harrington's defence regarding the true value of the final account and the right to abatement/set-off. There is no implied term in the contract that retention is only payable after the final account is agreed; retention is payable within a reasonable time after completion, subject to any valid defence, and Harrington is not contractually barred from raising overpayment or abatement as a defence.

Citation
[2011] EWHC 813 (TCC)
Parties
Claimant: PC Harrington Contractors Limited; Defendant: Tyroddy Construction Limited
Jurisdiction
England and Wales
Judgment Date
25 March 2011
Procedural Posture
Part 8 Proceedings (technology and Construction Court) / Judgment on Enforceability of Adjudicator's Decisions and Contract Interpretation
Outcome
Adjudicator's decisions declared unenforceable due to breach of natural justice; declaration granted regarding right to raise overpayment/abatement as a defence.
Legal Topics
Retention Under Construction Contracts, Implied Terms, Natural Justice in Adjudication, Set Off and Abatement, Enforceability of Adjudicator's Decisions
Construction Law Contract Law Adjudication Retention Under Construction Contracts Implied Terms Natural Justice in Adjudication Set Off and Abatement Enforceability of Adjudicator's Decisions

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Parties

PC Harrington Contractors Limited

Claimant

Tyroddy Construction Limited

Defendant

Procedural Posture

Part 8 Proceedings (technology and Construction Court) / Judgment on Enforceability of Adjudicator's Decisions and Contract Interpretation

Legal Issues

  1. 1 Whether the adjudicator's decisions are unenforceable due to breach of natural justice
  2. 2 Whether retention monies are only payable after final account is agreed or ascertained
  3. 3 Whether Harrington can raise overpayment/abatement/set-off as a defence to Tyroddy's claim for retention

Ratio Decidendi

The adjudicator's decisions are unenforceable due to a material breach of natural justice, as he failed to consider Harrington's defence regarding the true value of the final account and the right to abatement/set-off. There is no implied term in the contract that retention is only payable after the final account is agreed; retention is payable within a reasonable time after completion, subject to any valid defence, and Harrington is not contractually barred from raising overpayment or abatement as a defence.

Court Disposition

Adjudicator's decisions declared unenforceable due to breach of natural justice; declaration granted regarding right to raise overpayment/abatement as a defence.

Orders

  • The adjudicator's decisions in favour of Tyroddy are not enforceable.
  • Declaration that Harrington may raise overpayment/abatement/set-off as a defence to Tyroddy's claim for retention.