Adjudication: Jurisdiction and Severability

In the following case, the court refused to enforce a decision of the adjudicator on the grounds that the adjudicator made a material jurisdictional error in deliberately declining to consider the employer's set -off defence; and that the deliberate decision amounted to a breach of natural justice.

Pilon Limited v Breyer Group plc [2010] EWHC 837 (TCC)

The employer engaged a contractor to carry out refurbishment work on a redevelopment project in Ealing. The work was divided into two separate sections, batches 1-25 and batches 26-62.

Disputes arose between the parties and the contractor left the site in October 2008. In January 2009 the contractor entered into a company voluntary arrangement. Nine months later in September 2009 the contractor issued a payment application in respect of batches 26-62. Adjudication proceedings followed with the adjudication notice expressly limiting the claim to batches 26-62.