Part of Adjudicator’s decision not canvassed with parties before decision
In the case of Bilton & Johnson (Building) Co Ltd v Three Rivers Property INvestments Ltd [2022] EWHC 53 (TCC), Three Rivers appointed Bilton for refurbishment works at an industrial estate. There was an original contract that was replaced by a JCT DB 2016 which was signed and returned by Bilton.
There was a dispute over delays and Three Rivers entitlement to L&AD’s. In the original contract L&AD’s were £2.5k per section per week, whilst in the later contract it was £2.5k per week for the entire works.
The adjudicator decided that the signed contract superseded the original contract. This meant that Three Rivers had over-deducted L&AD’s.
The matter went to enforcement and Three Rivers argued that the adjudicator’s findings were not based on arguments made by either party and the adjudicator had failed to determine its rectification defence.
The court said that the adjudicator’s decision on the singed contract was derived – if not expressly taken from the parties submissions and did not need to be canvassed with them in advance of the decision being taken.
Further that, the adjudicator had issued four pages on the topic of rectification.
The Judge said that a breach of natural justice had to be material and more than peripheral. He was not obliged to consult with the parties on every aspect of his thinking.
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