ATALIAN SERVEST AMK LTD AGAINST B W (ELECTRICAL CONTRACTORS) LTD [2023] ScotCS CSIH_18 (18 April 2023)

ATALIAN SERVEST AMK LTD AGAINST B W (ELECTRICAL CONTRACTORS) LTD [2023] ScotCS CSIH_18 (18 April 2023)

The adjudicator's award is enforceable as he acted within jurisdiction, answered the question posed, and observed natural justice. The FAS was not binding because BWE commenced adjudication and court proceedings within the contractual period. The adjudicator's approach, though broad, was a genuine attempt to value the works as required by the contract and statute. The commercial judge's interlocutors are adhered to, with minor correction.

Citation
[2023] ScotCS CSIH_18
Parties
Reclaimer / Applicant / Defendant in Enforcement Action / Pursuer in Declarator Action: ATALIAN SERVEST AMK LIMITED; Respondent / Claimant in Enforcement Action / Defender in Declarator Action: B W (ELECTRICAL CONTRACTORS) LIMITED
Jurisdiction
Scotland
Judgment Date
18 April 2023
Procedural Posture
Commercial Construction Contract Dispute; Reclaiming Motions (appeals) Against Commercial Judge's Interlocutors / Appeal (inner House, Court of Session, First Division)
Outcome
Appeal dismissed; interlocutors of commercial judge adhered to (with correction).
Legal Topics
Adjudication Enforcement, Final Account Statement, Variation and Valuation of Works, Natural Justice in Adjudication, Interpretation of Finality Clauses
Construction Law Contract Law Civil Procedure Adjudication Enforcement Final Account Statement Variation and Valuation of Works Natural Justice in Adjudication Interpretation of Finality Clauses

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Parties

ATALIAN SERVEST AMK LIMITED

Reclaimer / Applicant / Defendant in Enforcement Action / Pursuer in Declarator Action

B W (ELECTRICAL CONTRACTORS) LIMITED

Respondent / Claimant in Enforcement Action / Defender in Declarator Action

Procedural Posture

Commercial Construction Contract Dispute; Reclaiming Motions (appeals) Against Commercial Judge's Interlocutors / Appeal (inner House, Court of Session, First Division)

Legal Issues

  1. 1 Whether the adjudicator's award should be enforced pending final determination of the dispute
  2. 2 Whether the Final Account Statement (FAS) was valid and binding under the contract and/or statute
  3. 3 Whether the adjudicator acted within jurisdiction and observed natural justice

Ratio Decidendi

The adjudicator's award is enforceable as he acted within jurisdiction, answered the question posed, and observed natural justice. The FAS was not binding because BWE commenced adjudication and court proceedings within the contractual period. The adjudicator's approach, though broad, was a genuine attempt to value the works as required by the contract and statute. The commercial judge's interlocutors are adhered to, with minor correction.

Court Disposition

Appeal dismissed; interlocutors of commercial judge adhered to (with correction).

Orders

  • Enforcement of adjudicator's award in favour of BWE for £1.4 million plus interest, fees, and expenses.
  • AMK's declarator action dismissed in so far as relating to the second and third conclusions.