The Construction Centre Group Ltd v. The Highland Council [2002] ScotCS CSOH_354 (23 August 2002)

The Construction Centre Group Ltd v. The Highland Council [2002] ScotCS CSOH_354 (23 August 2002)

The court held that the adjudicator's award is provisionally binding and enforceable, and that the defender's failure to raise retention or set-off before the adjudicator precludes reliance on those grounds to resist enforcement. Section 111 does not permit a post-adjudication withholding notice. There is no competent defence to the pursuer's claim for enforcement of the adjudicator's award.

Citation
[2002] ScotCS CSOH_354
Parties
Pursuer: The Construction Centre Group Limited; Defender: The Highland Council
Jurisdiction
Scotland
Judgment Date
23 August 2002
Procedural Posture
Commercial Action (construction Contract Dispute) / Motion for Summary Decree After Adjudicator's Award
Outcome
Summary decree granted in favour of the pursuer for the sum awarded by the adjudicator, with the question of expenses reserved.
Legal Topics
Adjudication Enforcement, Summary Decree, Retention and Set Off, Housing Grants, Construction and Regeneration Act 1996, Section 108 and 111 Notices
Construction Law Contract Law Civil Procedure Adjudication Enforcement Summary Decree Retention and Set Off Housing Grants, Construction and Regeneration Act 1996 Section 108 and 111 Notices

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Parties

The Construction Centre Group Limited

Pursuer

The Highland Council

Defender

Procedural Posture

Commercial Action (construction Contract Dispute) / Motion for Summary Decree After Adjudicator's Award

Legal Issues

  1. 1 Whether an adjudicator's award under a construction contract is enforceable by summary decree despite being provisional
  2. 2 Whether the defender can resist enforcement by raising retention or set-off based on liquidate damages not raised before the adjudicator
  3. 3 Whether a section 111 notice can be served after an adjudicator's decision to withhold payment

Ratio Decidendi

The court held that the adjudicator's award is provisionally binding and enforceable, and that the defender's failure to raise retention or set-off before the adjudicator precludes reliance on those grounds to resist enforcement. Section 111 does not permit a post-adjudication withholding notice. There is no competent defence to the pursuer's claim for enforcement of the adjudicator's award.

Court Disposition

Summary decree granted in favour of the pursuer for the sum awarded by the adjudicator, with the question of expenses reserved.

Orders

  • Defender to pay £245,469.24 to the pursuer as per the adjudicator's decision.