Breach of natural justice prevents adjudicator from recovering his fees

In PC Harrington Contractors Ltd v Systech International Ltd [2012] EWCA Civ 1371, [2012] All ER (D) 283 (Oct) the Court of Appeal allowed an appeal from the decision of Mr Justice Akenhead (on which see our November 2011 issue, pp4–7) and held that the breach by an adjudicator of the principles of natural justice had the consequence that the adjudicator was not entitled to recover his fees from the parties. The performance for which the parties had bargained was held to be the making of an enforceable decision by the adjudicator and there was nothing in the contract between the parties and the adjudicator which indicated that the parties would pay for an unenforceable decision or for services preparatory to the making of an unenforceable decision. An adjudicator who does wish to recover his fees in the event that his decision proves to be unenforceable as a result of a breach of the principles of natural justice must now insert a clause into his contract with the parties if he or she is to recover in such circumstances.