Construction Adjudication Cases: Part 2 of 2020

1) COVID-19 – Injunction to Prevent Proceedings: MillChris Developments Ltd v Waters [6] The Act allows parties to refer a dispute to adjudication "at any time" and it is only in exceptional circumstances that an injunction might be granted to restrain that right. In this case, the contractor applied for an injunction to restrain an on-going adjudication commenced against them by their house-owner employer on the grounds that because of the COVID-19 lockdown, there would be a breach of the rules of natural justice if the adjudication was allowed to continue. Jefford J. confirmed that the court had jurisdiction to grant such an injunction in an on-going adjudication, where for example one party was no longer trading[7], or where an adjudicator had indicated they would only hear from one party, but would do so rarely and only in very clear-cut cases. She rejected the argument that the COVID-19 lockdown would lead to a breach of the rules of natural justice in this case if the adjudication continued. This was not a case where the threshold had been met. It was said that the contractor's solicitor was self-isolating, but no explanation was offered as to why papers could not have been transported or scanned over to the solicitor (or anyone else instructed). The contractor also complained of lack of time to obtain evidence by way of witness statements from former employees, namely the contractor's former managing director and former project manager. The court held that had nothing to do with the lockdown but resulted from a failure to contact the witnesses concerned.

The defendant home-owner had offered an extension of time to the adjudication process which could have ameliorated any issues with witnesses and evidence. The contractor further complained that there was no opportunity to accompany the adjudicator upon a site visit because of the restrictions imposed by the COVID-19 crisis. The court stated that the parties had no right to attend a site visit and that if a site visit was necessary, the adjudicator could attend on his own armed with a list of specific matters provided by the parties beforehand for his attention.

[6] MillChris Developments Ltd v Waters [2020] 4 WLUK 45 (2 April 2020) (Jefford J). [7] Bresco Electrical Services Ltd (In Liquidation) v Michael J Lonsdale (Electrical) Ltd [2019] EWCA Civ 27

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