Are Adjudication Costs Now Recoverable Through Litigation?

The Board of Trustees of National Museums and Galleries on Merseyside ("the Museum") v AEW Architects and Designers Limited ("AEW"), a decision of the Technology and Construction Court (TCC) issued on 31 July 2013, confirmed that legal and other costs incurred during an adjudication may be recovered from the losing party.

In this case AEW, the Contractor, had referred a dispute to adjudication seeking a declaration from the adjudicator that AEW were not responsible for certain defective designs. The adjudicator agreed with AEW in this regard and issued the declaration to that effect and also determined that the Museum should pay the adjudicator's fee for the adjudication.

The Museum subsequently raised proceedings in the TCC seeking to recover damages arising from the defective designs.  The damages claimed included the adjudicator's fees and the Museum's legal and expert costs incurred in defending the adjudication. The Museum argued that the adjudicator's