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John-Doyle-Construction-Limited-v-Erith-Contractors-Limited.pdf
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🔗 Source: hklegal.co.uk
📊 Size: 183 KB
👤 Author: Katherine Morgan
⬇️ Downloads: 234

Summary

The UK Supreme Court's decision in Bresco Electrical Services Limited v Michael J Lonsdale (Electrical) Limited allowed an insolvent party to adjudicate a dispute, but the court may not enforce the adjudicator's decision due to insolvency. The recent case of John Doyle Construction Limited v Erith Contractors Limited applied the Bresco decision, with Fraser J setting out five principles for the court to consider when enforcing an adjudicator's decision in favor of an insolvent company:

1. Does the adjudicator's decision cover all financial dealings under the construction contract?
2. Are there mutual dealings outside the construction contract?
3. Are there other defences available to the defendant?
4. Is the liquidator prepared to offer undertakings, such as ring-fencing enforcement proceeds?
5. Is there a real risk that summary enforcement will deprive the paying party of security for its cross-claim?

The court declined to grant summary judgment due to inadequate security for Erith's cross-claims and costs. The judgment provides clarification on the application of the Bresco decision and the five principles will likely guide future court decisions on enforcing adjudicator's decisions in favor of insolvent parties.

Description

The UK Supreme Court's decision in Bresco Electrical Services Limited v Michael J Lonsdale (Electrical) Limited allowed an insolvent party to adjudicate a...

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  • File Format: PDF
  • File Size: 183 KB
  • Pages: 2
  • Language: EN
  • Author: Katherine Morgan
  • Total Downloads: 234
  • Last Updated: 4 hours ago

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