SGL Carbon Fibres Ltd v RBG Ltd [2011] ScotCS CSOH_62 (31 March 2011)

SGL Carbon Fibres Ltd v RBG Ltd [2011] ScotCS CSOH_62 (31 March 2011)

The adjudicator breached natural justice by relying on his own experience to make factual findings on labour inefficiency and productivity without giving the parties adequate opportunity to comment or providing sufficient detail about his relevant experience. The parties were not afforded a fair chance to respond, especially as the issues were raised late and without specificity. Accordingly, the decision should not be enforced.

Citation
[2011] ScotCS CSOH_62
Parties
Pursuer: SGL Carbon Fibres Limited; Defender: RBG Limited
Jurisdiction
Scotland
Judgment Date
31 March 2011
Procedural Posture
Commercial Action and Judicial Review Petition (reduction) / Outer House, Court of Session; Judgment on Enforcement and Reduction of Adjudicator's Decision
Outcome
Adjudicator's decision not enforced; reduction granted.
Legal Topics
Adjudication Enforcement, Natural Justice, Jurisdiction of Adjudicator, Reduction of Adjudicator's Decision, Housing Grants, Construction and Regeneration Act 1996
Construction Law Contract Law Civil Procedure Adjudication Enforcement Natural Justice Jurisdiction of Adjudicator Reduction of Adjudicator's Decision Housing Grants, Construction and Regeneration Act 1996

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Parties

SGL Carbon Fibres Limited

Pursuer

RBG Limited

Defender

Procedural Posture

Commercial Action and Judicial Review Petition (reduction) / Outer House, Court of Session; Judgment on Enforcement and Reduction of Adjudicator's Decision

Legal Issues

  1. 1 Whether the adjudicator's decision should be enforced given alleged breach of natural justice
  2. 2 Whether the adjudicator failed to exhaust or exceeded his jurisdiction

Ratio Decidendi

The adjudicator breached natural justice by relying on his own experience to make factual findings on labour inefficiency and productivity without giving the parties adequate opportunity to comment or providing sufficient detail about his relevant experience. The parties were not afforded a fair chance to respond, especially as the issues were raised late and without specificity. Accordingly, the decision should not be enforced.

Court Disposition

Adjudicator's decision not enforced; reduction granted.

Orders

  • Refusal to enforce the adjudicator's decision in favour of SGL Carbon Fibres Limited.
  • Decree of reduction granted in respect of the adjudicator's decision.