Cases Part 2 2023 - final

owed JBH the net sum of £82,956.88. Thus, at the time of the appeal, nothing was

due to AVB.

AVB did not pay the sum identified by the second adjudicator. The hearing of the

enforcement application in respect of the second adjudicator's decision was due

to take place after the hearing of the appeal but, for the appellate court's

purposes, it was sufficient to note that, on the face of it, the second decision meant

that no sums were thereafter due to AVB.

The powers of the court in adjudication

Permission to appeal had been given on three grounds (and refused on others).

The first (Ground 1) concerned the substantive and procedural propriety of the

part 8 proceedings: was JBH permitted to commence and/or to continue such

proceedings, or should they have been struck out? That raised a subsidiary issue: if

the part 8 proceedings were valid, how should they have been addressed in the

context of an outstanding adjudicator's decision in favour of AVB?

Coulson LJ, giving the judgment of the Court of Appeal, said that while the courts

were open to parties in adjudication proceedings, even in an ongoing

adjudication[6], regard must be had ton "the guiding principle behind construction adjudication: the ‘ pay now argue later ’ mantra." That did not mean parallel proceedings were invalid or an abuse of process. However, as the law had

developed, resorting to the courts during an ongoing adjudication for declarations

of the type sought was the exception, not the rule, and should not be used to

circumvent or undermine adjudication[7].

The proper approach to parallel proceedings was as outlined by O'Farrell J in

Structure Consulting Limited v Maroush Food Production Limited [2017] EWHC 962

(TCC). The judge should usually give judgment on the claim based on the

7

Made with FlippingBook - Share PDF online