Ritchie Brothers (Pwc) Ltd v. David Philp (Commercials) Ltd [2005] ScotCS CSIH_32 (24 March 2005)

Ritchie Brothers (Pwc) Ltd v. David Philp (Commercials) Ltd [2005] ScotCS CSIH_32 (24 March 2005)

The majority held that the time limit in paragraph 19(1)(a) is mandatory. The adjudicator's jurisdiction ceases on expiry of the 28-day period unless an extension is obtained within that time. Any decision reached after the expiry is ultra vires and unenforceable. The Scheme's language and objectives of certainty and speed require strict adherence to the time limit.

Citation
[2005] ScotCS CSIH_32
Parties
Pursuer and Respondent: Ritchie Brothers (PWC) Limited; Defender and Reclaimer: David Philp (Commercials) Limited
Jurisdiction
Scotland
Judgment Date
24 March 2005
Procedural Posture
Reclaiming Motion (appeal) From Outer House Decision / Inner House, Court of Session (appeal Decision)
Outcome
Reclaiming motion allowed; Lord Ordinary's interlocutor recalled; defender's pleas sustained; award reduced ope exceptionis; decree of absolvitor granted.
Legal Topics
Adjudication Under Construction Contracts, Interpretation of Statutory Time Limits, Jurisdiction of Adjudicator, Scheme for Construction Contracts (scotland) Regulations 1998, Housing Grants, Construction and Regeneration Act 1996
Construction Law Civil Procedure Adjudication Under Construction Contracts Interpretation of Statutory Time Limits Jurisdiction of Adjudicator Scheme for Construction Contracts (scotland) Regulations 1998 Housing Grants, Construction and Regeneration Act 1996

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Parties

Ritchie Brothers (PWC) Limited

Pursuer and Respondent

David Philp (Commercials) Limited

Defender and Reclaimer

Procedural Posture

Reclaiming Motion (appeal) From Outer House Decision / Inner House, Court of Session (appeal Decision)

Legal Issues

  1. 1 Are the time limits in paragraph 19(1)(a) of the Scheme for Construction Contracts (Scotland) Regulations 1998 mandatory or directory?
  2. 2 Does an adjudicator's jurisdiction expire if a decision is not reached within 28 days absent a timely extension?

Ratio Decidendi

The majority held that the time limit in paragraph 19(1)(a) is mandatory. The adjudicator's jurisdiction ceases on expiry of the 28-day period unless an extension is obtained within that time. Any decision reached after the expiry is ultra vires and unenforceable. The Scheme's language and objectives of certainty and speed require strict adherence to the time limit.

Court Disposition

Reclaiming motion allowed; Lord Ordinary's interlocutor recalled; defender's pleas sustained; award reduced ope exceptionis; decree of absolvitor granted.

Orders

  • Recall of Lord Ordinary's interlocutor
  • Sustain defender's pleas in law 2 and 3