Adjudication disputes in connection with the contract
The case of J Murphy & Sons Ltd v W Maher and Sons Ltd [2016] EWHC 1148 (TCC), clarified the difference between dispute=s arising under the contract as differentiated with disputes in connection with the contract.
It was previously thought that you could adjudicate (under the Scheme), disputes arising under the contract, but not in connection with the contract.
This was because the Scheme at Part I, para. 1 (1), only refers to ‘a dispute arising under the contract’.
This meant that parties settlement agreements e.g. final account settlements may not be adjudicated upon under the Scheme.
However, in the above case, the Judge stated that there was no logical reason to differentiate between disputes arising under the contract with disputes in connection with the contract, and that all disputes relating to the contract were disputes arising under the contract and further stated that in relation to the parties settlement agreement, this was in effect a variation of the earlier agreement.
So, there you have it, guidance from the courts on whether you can adjudicate on final account / settlement agreements, it appears to be yes!
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