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Jurisdiction – Commencement of true value adjudication before payment of notified
sum
Henry Construction Projects Limited v Alu-Fix (UK) Limited [2023] EWHC 2010
(TCC) District Judge Baldwin judgment 23 May 2023
Henry applied for summary judgment to enforce the "true value" adjudication decision of Mr
M.T. Molloy dated 6 March 2023 ("TVA") awarding them £191,753.88 plus interest. Alu-Fix
resisted on the basis that Mr Molloy lacked jurisdiction because the TVA had been commenced
prior to Henry having paid them the notified sum due to them under the JCT Contract between
the parties.
Alu-Fix had made a payment application. Henry failed to make payment or to issue a payment notice or (as it was later found) serve an effective pay less notice ( “ PLN ” ). Alu-Fix commenced a smash and grab adjudication before Mr Rayner (“SGA”). At that point, without making payment of the application, Henry commenced the TVA. Alu-Fix asked Mr Molloy to resign
because Henry had commenced the TVA before making payment of the notified sum. Mr
Molloy found he had jurisdiction because at that time Mr Rayner had not yet made any decision
and it remained to be seen whether the sum claimed in the SGA (and disputed by Henry) was
or was not due. Mr Molloy stayed the TVA pending the outcome and payment of any sum
found due by Mr Rayner.
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