Another Wembley Case: Cherry Picking For Adjudication And Satellite Litigation

The latest Wembley stadium case between Multiplex (M) and its concrete works sub-contractor, PC Harrington (PCH) shows how satellite litigation can arise when a party adjudicates a cherry picked part of an interim application.

PCH applied for a net sum of over £13m. M certified that just under £11m was payable but by PCH to M (valuing PCH’s works at £2.3m but deducting £13m). M started an adjudication in respect of the costs it incurred resolving an alleged defect in PCH’s work accounting for £2m of the £13m deducted.

PCH asked the court to rule that the adjudicator could only decide whether PCH was liable and if so for what, but not to direct payment of any sum by PCH to M because account had to be taken of the amount certified. That amount was £2.3m due from M to PCH because as a matter of interpretation of the contract, M could only certify a sum payable to PCH (and not a sum payable to M). PCH said that M might withhold from that sum but it could not produce a sum payable to