THE SCOPE OF S107(5) OF THE HOUSING GRANTS, CONSTRUCTION AND REGENERATION ACT 1996

In S G South Ltd v Swan Yard (Cirencester) Ltd [2010] EWHC 376 (TCC), Mr Justice Coulson held that the claimant was entitled to summary judgment in order to enforce the decision of an adjudicator. Of more general interest is his conclusion that the adjudicator had jurisdiction notwithstanding the absence of a construction contract ‘in writing’ as required by s107(1) of the Housing Grants, Construction and Regeneration Act 1996. He held that the adjudicator had jurisdiction by virtue of s107(5) which operates as a kind of ‘statutory estoppel’. Given that the defendants had expressly stated in writing that they did not object to the jurisdiction of the adjudicator, they were prevented from going back upon that representation and so the adjudicator did have the necessary jurisdiction and the court was entitled to enforce his decision.