Cases Part 2 2023 - final

Nicholas James Care Homes Ltd v Liberty Homes (Kent) Ltd [2023] EWHC 360 (TCC)

Mr Recorder Andrew Singer KC judgment 21 February 2023

There were three issues before the court.

(1) Should the Decision of the adjudicator (Dr Chern) be enforced summarily (the

Decision)?

(2) Should a freezing injunction obtained by the claimant (NJCH) be discharged or

continued?

(3) Should there be a stay of execution of enforcement of the Decision of Dr

Chern?

NJCH had employed the defendant, Liberty, for construction works at its Beacon Hill

care home. There were two adjudications between the parties, the Decision in the

second of which was the subject of several applications before the court. The first

application in time was an application to enforce the Decision. The second was an

application by Liberty to discharge a freezing injunction granted by O'Farrell J. The

third was Liberty's application for a stay of execution of any judgment. Liberty also

made a part 8 application based on its objections to the enforcement

application.

At the heart of Liberty's case was an assertion that 'the way in which Dr Chern

demanded payment for his services in advance of the delivery of the Decision' in a

series of emails sent by Dr Chern's clerk amounted to the purported exercise of lien

for payment before he would issue his Decision. That, it was argued, amounted to

manifest bias, and the result was that the Decision was not enforceable.

Pursuant to his terms of appointment, Dr Chern required each party to deposit

£10,000 by way of security for his fees. In response, Liberty's solicitors made it clear

that Liberty was reserving its position on its jurisdictional arguments (both raised in

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