ADJUDICATION, AGENCY AND NATURAL JUSTICE

In CRJ Services Ltd v Lanstar Ltd (t/a CSG Lanstar) [2011] EWHC 972 TCC, [2011] All ER (D) 122 (May) Mr Justice Akenhead held that the claimant was entitled to summary judgment in order to enforce the decision of an adjudicator. The defendant had resisted enforcement on two grounds. The first was that there had been a breach of natural justice but it was held that the defendant had failed to establish on the evidence a material breach of the rules of natural justice. The second was that the adjudicator lacked jurisdiction because there was no contract between the parties on the ground that the person who had purported to act for the defendant had no authority, actual, implied or ostensible to do so. This defence was also rejected on the ground that the person concerned had apparent or ostensible authority to enter into the contract in question.

The Facts

The claimant company was in the business of hiring out recycling plant and equipment and there was a history of business between the claimant and the defendant company going back to 2007. The defendant gave to Mr Vaughan the job of running a site and, in that connection, he was given authority to hire machinery on a short term basis. The dispute between the parties centred on a contract between the claimant and the defendant which had been signed by Mr Vaughan. The contract was for a three-year period and also contained a provision that, if the machine in question was ‘off-hired’ before the expiry of the hire term, then the hire charge for the remainder of the term would be charged at 60% of the agreed hire rates. In March 2010 the relationship between the defendant and Mr Vaughan was terminated.