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ARTICLE · 08 JUNE 2020

Legal Developments In Construction Law: May 2020

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A contractor received an adjudicator's decision finding it liable to make a substantial payment to a subcontractor but told the subcontractor it had been advised that the decision was invalid and...

United StatesReal Estate and Construction
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1. Court says paying the adjudicator's fees did not end its right to challenge the decision

A contractor received an adjudicator's decision finding it liable to make a substantial payment to a subcontractor but told the subcontractor it had been advised that the decision was invalid and unenforceable. It subsequently paid the adjudicator's fees but recorded, in doing so, that payment did not constitute agreement that the decision was correct, valid or enforceable and reserved all its rights to challenge the decision. Was that reservation effective or had it lost its right of challenge?

The court noted that, although there is strong authority that payment of an adjudicator's fees may amount to an election to treat an adjudicator's decision as valid, the question is what is to be inferred from such a payment. As a matter of policy, the judge considered that the court should not do anything to discourage payment of an adjudicator's fees and should perhaps be

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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