NKT Cables A/S v SP Power Systems Ltd [2017] ScotCS CSOH_38 (08 March 2017)

NKT Cables A/S v SP Power Systems Ltd [2017] ScotCS CSOH_38 (08 March 2017)

The court held that the adjudicator did not have power under the amended Scheme to correct his decision, as the contract pre-dated the amendment and the parties had not agreed to apply the amended Scheme. However, a power to correct clerical errors could be implied as a matter of law. The amendments made by the adjudicator fell within the scope of the slip rule, as they corrected accidental errors and did not involve a substantive re-evaluation. There was no breach of natural justice, as the defender was copied into the correspondence and had an opportunity to respond. The adjudicator did not fail to exhaust his jurisdiction or provide inadequate reasons, as he addressed the central...

Citation
[2017] ScotCS CSOH_38
Parties
Pursuer: NKT Cables A/S; Defender: SP Power Systems Limited
Jurisdiction
Scotland
Judgment Date
08 March 2017
Procedural Posture
Commercial Enforcement of Adjudicator's Award / Outer House, Court of Session, Opinion
Outcome
Decree granted for enforcement of the Amended Decision in favour of the pursuer.
Legal Topics
Adjudication Enforcement, Slip Rule, Jurisdiction of Adjudicator, Natural Justice, Sufficiency of Reasons
Construction Law Contract Law Civil Procedure Adjudication Enforcement Slip Rule Jurisdiction of Adjudicator Natural Justice Sufficiency of Reasons

Case Brief

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Parties

NKT Cables A/S

Pursuer

SP Power Systems Limited

Defender

Procedural Posture

Commercial Enforcement of Adjudicator's Award / Outer House, Court of Session, Opinion

Legal Issues

  1. 1 Whether the adjudicator had power to amend his original decision under the slip rule or by implication
  2. 2 Whether the amendment was within the scope of the slip rule
  3. 3 Whether the amendment breached natural justice

Ratio Decidendi

The court held that the adjudicator did not have power under the amended Scheme to correct his decision, as the contract pre-dated the amendment and the parties had not agreed to apply the amended Scheme. However, a power to correct clerical errors could be implied as a matter of law. The amendments made by the adjudicator fell within the scope of the slip rule, as they corrected accidental errors and did not involve a substantive re-evaluation. There was no breach of natural justice, as the defender was copied into the correspondence and had an opportunity to respond. The adjudicator did not fail to exhaust his jurisdiction or provide inadequate reasons, as he addressed the central...

Court Disposition

Decree granted for enforcement of the Amended Decision in favour of the pursuer.

Orders

  • The defender is ordered to pay the sum of £2,143,712.28 to the pursuer, together with VAT and interest at the specified daily rate.