LIABILTY FOR THE FEES OF AN ADJUDICATOR

Linnett v Halliwells LLP [2009] EWHC 319 (TCC), [2009] All ER (D) 36 (Mar)

In Linnett v Halliwells LLP [2009] EWHC 319 (TCC), [2009] All ER (D) 36 (Mar) Mr Justice Ramsey considered the basis on which the responding party to an adjudication may be liable for the fees of an adjudicator (in a case where the responding party has not agreed to be bound by the adjudicator’s terms of engagement). Drawing upon the law of arbitration as an analogy, he held that the responding party was liable to pay the reasonable fees and expenses of the adjudicator. Had the responding party declined to participate in the adjudication, it would not have been liable for the fees. But, having decided to participate, albeit subject to its objection to the jurisdiction of the adjudicator, it was held to have requested the adjudicator to carry on with his work and to make a decision and, on this basis, it was liable to pay the adjudicator’s reasonable fees and expenses. Further, Mr Justice Ramsey dismissed the challenges to the jurisdiction of the adjudicator.