ENTERING AN EFFECTIVE RESERVATION IN RELATION TO THE JURISDICTION OF AN ADJUDICATOR

In CN Associates (a firm) v Holbeton Ltd [2011] EWHC 443(TCC), [2011] All ER (D) 217 (Jan) Mr Justice Akenhead held that the defendants had effectively reserved their position on the jurisdiction of the adjudicator and that the parties had not conferred on the adjudicator jurisdiction to decide his own jurisdiction. He then found that the defendants had established a realistic prospect of a successful defence to the claimants’ attempt to enforce the decision of the adjudicator by way of an application for summary judgment. But, the defendants having only just passed the threshold for obtaining permission to defend, Akenhead J decided that the defendants should be required to pay into court within fourteen days the full amount of the claim as a condition for giving permission to defend.

The issues

The claimants, CN Associates, brought the present proceedings in order summarily to enforce the decision of an adjudicator. The defendants, Holbeton Ltd, resisted enforcement on the principal grounds that they had effectively reserved their position on the jurisdiction of the adjudicator to decide the dispute which had been referred to him and they also submitted that they had not by agreement or otherwise conferred upon the adjudicator jurisdiction to decide his own jurisdiction. The claimants for their part submitted that the adjudicator did have jurisdiction to decide the matter and that the parties had in any event agreed that the adjudicator was to be given jurisdiction to decide whether he had jurisdiction.