CONTRACT FORMATION, ADJUDICATION AND THE STAY OF COURT PROCEEDINGS

Cubitt Building and Interiors Ltd v Richardson Roofing (Industrial) Ltd [2008] EWHC 1020 (TCC), [2008] All ER (D) 106 (May)

Two distinct issues arose on the facts of Cubitt Building and Interiors Ltd v Richardson Roofing (Industrial) Ltd [2008] EWHC 1020 (TCC), [2008] All ER (D) 106 (May). The first concerned the process by which a contract was concluded between the parties. This required Mr Justice Akenhead to examine the negotiations which took place between the parties and to consider which terms had been incorporated into their contract. The second issue concerned the jurisdiction of a court to stay court proceedings where there is a provision for adjudication in the contract between the parties. In this context, Mr Justice Akenhead drew a distinction between the case where the parties are obliged by the terms of their contract to resort to adjudication and the case in which a party has the right (but not the obligation) to refer a dispute to adjudication. In the latter case a court may be less inclined to grant a stay.