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ARTICLE · 14 NOVEMBER 2011

Adjudicators' Entitlement To Payment Secured

Should adjudicators be entitled to payment when the court refuses to enforce their decision because of mistakes made by the adjudicator?

United KingdomReal Estate and Construction
Shona Frame
Shona Frame
Madeleine Young
Madeleine Young
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Should adjudicators be entitled to payment when the court refuses to enforce their decision because of mistakes made by the adjudicator?

Previously, there has been little by the way of guidance on this question.  However, the recent case of Systech International Ltd v PC Harrington Contractors Ltd, clarifies the position. 

Background

Harrington and Tyroddy Construction Ltd were engaged in three adjudications relative to three separate contracts, in which Tyroddy sought payment of outstanding retention. An adjudicator was appointed (employed by Systech).  Harrington put forward a defence based on (amongst other things) a re-measurement of Tyroddy's works which, they claimed, meant that they had vastly overpaid Tyroddy so no retention could be payable.  The adjudicator rejected this, stating that he did not accept the re-measurement because it was "not agreed but also contractually flawed and outwith [the] dispute."

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