ADJUDICATION, THE AWARD OF INTEREST AND STAY OF ENFORCEMENT

In Partner Projects Ltd v Corinthian Nominees Ltd [2011] EWHC 2989 (TCC), [2011] All ER (D) 232 (Nov) Mr Justice Edwards-Stuart held that an adjudicator had not acted in excess of his jurisdiction in making an award of interest to the claimant. The adjudicator was held to have opened up and reviewed the architect’s certificates and to have substituted for the sums certified as due, the sum that he judged should have been certified. On this basis, the adjudicator had been entitled to award interest on the amount due under these corrected certificates. He also rejected the defendant’s claim that it was entitled to a stay of enforcement. Although the claimant was in poor financial health, its present difficulties had been caused in significant part by the defendant’s default and the conduct of the defendant in appearing to trade while insolvent further re-inforced the conclusion that it was not entitled to a stay.

The facts

The claimant, Partner Projects Ltd, entered into a contract with the defendant, Corinthian Nominees Ltd, under which the claimant agreed to construct a new five-bedroom house in London. Unfortunately, the project did not run smoothly and the contract was eventually terminated by the defendant. The claimant made substantial claims for variations, delay and significantly increased costs and expenses which it submitted arose from alleged delays and design changes. Eventually, these disputes were referred to adjudication. The adjudicator decided that the defendant should pay to the claimant the sum of £850,509.35, plus interest at a rate of £150.46 per day.