ADJUDICATION, FRAUD AND STAY OF EXECUTION

In Speymill Contracts Ltd v Baskind [2010] EWCA Civ 120, [2010] All ER (D) 285 (Feb) the Court of Appeal approved the analysis of Mr Justice Akenhead in SG South Ltd v Kings Head Cirencester LLP [2009] EWHC 2645 (TCC), [2010] BLR 47 (on which see our December 2009/January 2010 issue, pp1-5) and held that fraud or deceit on the part of the party seeking to enforce the decision of an adjudicator can be raised as a defence in enforcement proceedings provided that the allegation of fraud is supported by clear and unambiguous evidence and argument. On the facts of the case the adjudicator had considered the allegation of theft and concluded that it did not provide the defendant with a defence to the claim brought by the claimants. This being the case, the defendant did not have an arguable defence to the enforcement proceedings and so summary judgment was entered for the claimants subject to the stay of execution which had been ordered by the judge (and which was not challenged by the claimants).