Construction Contracts: A Debt Is A Debt

Background

Viberts' client (the "Contractor") entered into a property development JCT contract (modified to be governed by Jersey law). The Contractor had permitted a retention to the developer (the "Employer") up to a certain limit pursuant to a JCT side letter. The Contractor sought payment of sums owed under interim certificates, but the Employer did not oblige and the funds remained outstanding.

The Contractor therefore referred the matter to the Royal Court seeking payment of the interim payments as a debt. However, without denying the sums were owed, the Defendant Employer sought a Stay of proceedings to facilitate Arbitration as it stated that the Arbitration clauses of the JCT contract applied.