Carillion Utility Services Ltd v SP Power Systems Ltd [2011] ScotCS CSOH_139 (18 August 2011)

Carillion Utility Services Ltd v SP Power Systems Ltd [2011] ScotCS CSOH_139 (18 August 2011)

The adjudicator breached the rules of natural justice by applying undisclosed commercial rates, which were material to the quantum of the award, without giving the parties an opportunity to comment. This breach rendered the decision unenforceable under paragraph 23(2) of Part I of the Scheme for Construction Contracts (Scotland) Regulations 1998.

Citation
[2011] ScotCS CSOH_139
Parties
Pursuer: Carillion Utility Services Limited; Defender: SP Power Systems Limited
Jurisdiction
Scotland
Judgment Date
18 August 2011
Procedural Posture
Commercial Construction Contract Enforcement / Judgment Following Debate on Enforceability of Adjudicator's Decision
Outcome
Claim dismissed; adjudicator's decision unenforceable due to breach of natural justice.
Legal Topics
Adjudication Enforcement, Natural Justice, Severability of Adjudicator's Decision, Quantum Assessment
Construction Law Contract Law Civil Procedure Adjudication Enforcement Natural Justice Severability of Adjudicator's Decision Quantum Assessment

Case Brief

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Parties

Carillion Utility Services Limited

Pursuer

SP Power Systems Limited

Defender

Procedural Posture

Commercial Construction Contract Enforcement / Judgment Following Debate on Enforceability of Adjudicator's Decision

Legal Issues

  1. 1 Whether the adjudicator's decision breached the rules of natural justice by relying on undisclosed material and methodology
  2. 2 Whether the offending part of the adjudicator's decision can be severed and enforced in part

Ratio Decidendi

The adjudicator breached the rules of natural justice by applying undisclosed commercial rates, which were material to the quantum of the award, without giving the parties an opportunity to comment. This breach rendered the decision unenforceable under paragraph 23(2) of Part I of the Scheme for Construction Contracts (Scotland) Regulations 1998.

Court Disposition

Claim dismissed; adjudicator's decision unenforceable due to breach of natural justice.

Orders

  • Case to be put out by order to ascertain parties' views on resolution of the dispute.