MULTIPLE ADJUDICATIONS AGAIN

In HS Works Ltd v Enterprise Managed Services Ltd [2009] EWHC 729 (TCC), [2009] BLR 378 Mr Justice Akenhead held that two decisions reached by two adjudicators in relation to disputes between the claimant and the defendant on the same construction project were both valid and enforceable and that the court and the parties were required to give effect to both decisions. In drawing up an order to give effect to both decisions he held that the court has a discretion as to how any order or orders on judgment should be drawn and that, on the facts of the case, the order should be drawn to reflect the net effect of this judgment (which was likely to be that a balance was due to the claimant). This pragmatic approach is to be welcomed, although it is likely that subsequent cases well test the limits of this approach.

The facts

The claimant, HS Works Ltd, was employed by the defendant, Enterprise Managed Services Ltd, to carry out construction work which involved repair, reinstatement and re-surfacing of highways at various locations in and around Greater London. Following completion of the works or the termination of the contact in late 2007 or early 2008, various issues arose between the parties in relation to the evaluation of the final account and in connection with a number of contra charges said to be due to the defendant. The disputes resulted in two adjudications. In the first adjudication the adjudicator decided that the defendant should pay to the claimant £1,835,252.26 plus interest, VAT and his fee. In the second adjudication the adjudicator decided that the valuation of the final account was £23,253,931.09 (having deducted from the final account contra charges of £1,562,514.67). In the present proceedings each party sought to enforce the decision in its favour while challenging the validity of the decision that had gone against it.