COSTS OF AN ADJUDICATION NOT RECOVERABLE AS DAMAGES

Total M and E Services Ltd v ABB Building Technologies Ltd [2002] EWHC 248 (Technology) (unreported, Technology and Construction Court, 26 February 2002)

In Total M and E Services Ltd v ABB Building Technologies Ltd [2002] EWHC 248 (Technology) (unreported, Technology and Construction Court, 26 February 2002) Judge David Wilcox held that the claimant, who was the successful party to an adjudication, was not entitled to recover from the defendant the costs of the adjudication as a damages claim. He also held that the requirements of s107 were satisfied in the case of a written contract which was subsequently varied orally by the parties (although it may be questioned whether this approach can survive in the light of the later decision of the Court of Appeal in RJT Consulting Engineers Ltd v DM Engineering (Northern Ireland) Ltd [2002] EWCA Civ 270 (unreported, Court of Appeal, 8 March 2002), above p. 4). Finally he held that the defendant was not entitled to stay the proceedings on the ground that the claimant was in a precarious financial situation and might not be able to repay the sum awarded to it in the event that the award was challenged successfully by the defendant.