John Doyle Construction Ltd v Erith Contractors Ltd

A recent Supreme Court judgement clarified the right of insolvent companies to start adjudications. In the course of this judgement, it was stated that an adjudicator's decision in favour of an insolvent company will not always be enforceable; this was left to the discretion of the court to which the enforcement application is made. This present decision provides clarity as to how the court is likely to exercise its discretion, in laying down five principles that the court must consider in deciding whether to enforce an adjudicator's decision in favour of an insolvent company.

Background

This dispute arose in 2012 in relation to a construction contract for landscaping works at the Olympic Park in Stratford, London. John Doyle Construction (JDC) brought a claim against Erith for £4 million it considered due in relation to its Final Account. Shortly afterwards, JDC entered liquidation. At the subsequent adjudication, the adjudicator awarded JDC approximately £1.2