Can you adjudicate on same breach of contract?
I’ve been involved in adjudication since its inception, at the start both preparing adjudication Referrals and Responses and latterly acting as an Adjudicator. Below are some of my thoughts on adjudication.
The recent case of Dawnvale Cafe Components Ltd v Hylgar Properties Ltd [2024], has shed some light on whether you can adjudicate more than once on the same breach of contract.
By way of background Hylgar who was a property developer, contracted with Dawnvale for the design, supply & installation of mechanical works at a property in Wirral.
The parties relationship broke down and the contract was terminated in November 2020 with both parties alleging the other had repudiated the contract. So far, so usual.
In June 21, Hylgar referred a breach of contract dispute to adjudication that Dawnvale had committed a repudiatory breach and Hylgar was awarded £180k.
Two years later, Hylgar sought to recover a further £642k for further losses due to the breach of contract.
Dawnvale issued Part 8 proceedings in court stating that the new claim was the same or substantially the same as the old claim. Hylgar obviously disagreed and said that the new claim was a fresh dispute.
The judge however stated that the new claim was not substantially the same as the first claim as it concerned different issues. In the first adjudication the adjudicator the adjudicator decided Dawnvales breach and determined the true-value of the works at that point in time, The second adjudication was asked to decide further heads of loss arising from that same breach and there was no overlap.
So, there you have it, although every case is fact specific, it appears that you can adjudicate on the same cause of action – as long as it concerns different heads of loss.
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