D McLAUGHLIN & SONS LTD AGAINST EAST AYRSHIRE COUNCIL [2022] ScotCS CSIH_42 (16 September 2022)

D McLAUGHLIN & SONS LTD AGAINST EAST AYRSHIRE COUNCIL [2022] ScotCS CSIH_42 (16 September 2022)

The Final Certificate is conclusive evidence of sums due unless timeously challenged, but does not invalidate the interim payment regime. The Adjudicator's award, not challenged within 28 days, is binding. The defenders cannot rely on the Final Certificate to defeat enforcement of the interim payment notice while its correctness is under challenge in the first action. The reclaiming motion is refused; enforcement stands.

Citation
[2022] ScotCS CSIH_42
Parties
Pursuers and Respondents: D McLAUGHLIN & SONS LTD; Defenders and Reclaimers: EAST AYRSHIRE COUNCIL
Jurisdiction
Scotland
Judgment Date
16 September 2022
Procedural Posture
Reclaiming Motion (appeal) in Commercial Contract Enforcement / Appeal Judgment Following Enforcement and Counterclaim
Outcome
Reclaiming motion refused; enforcement of adjudicator's award upheld.
Legal Topics
Adjudication Enforcement, Final Certificate Conclusivity, Interim Payment Notices, Time Limits for Challenge, Contract Interpretation
Construction Law Contract Law Adjudication Enforcement Final Certificate Conclusivity Interim Payment Notices Time Limits for Challenge Contract Interpretation

Case Brief

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Parties

D McLAUGHLIN & SONS LTD

Pursuers and Respondents

EAST AYRSHIRE COUNCIL

Defenders and Reclaimers

Procedural Posture

Reclaiming Motion (appeal) in Commercial Contract Enforcement / Appeal Judgment Following Enforcement and Counterclaim

Legal Issues

  1. 1 Whether a Final Certificate is conclusive of sums due in adjudication about an interim payment
  2. 2 Whether an Adjudicator's decision can be reversed based on Final Certificate conclusivity
  3. 3 Validity and enforceability of Interim Payment Notice

Ratio Decidendi

The Final Certificate is conclusive evidence of sums due unless timeously challenged, but does not invalidate the interim payment regime. The Adjudicator's award, not challenged within 28 days, is binding. The defenders cannot rely on the Final Certificate to defeat enforcement of the interim payment notice while its correctness is under challenge in the first action. The reclaiming motion is refused; enforcement stands.

Court Disposition

Reclaiming motion refused; enforcement of adjudicator's award upheld.

Orders

  • Adhere to commercial judge's interlocutor of 7 December 2021
  • Focus on expediting progress of the first action