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Building Law Monthly

The meaning of ‘dispute’ and the role of good faith

In TSG Building Services plc v South Anglia Housing Ltd [2013] EWHC 1151 (TCC), [2013] All ER (D) 102 (May) Akenhead J held that only one dispute had been referred to adjudication, albeit that the dispute comprised three primary strands or issues. He affirmed the orthodox position that only one dispute can be referred to adjudication at the same time, while recognising that the courts adopt a sensible and commercial approach when determining the relative width of any given dispute. He also declined to imply a term into the contract requiring the parties to act in good faith. Given that the contract conferred upon the parties an express right to terminate the contract for no good or bad reason, it was not open to the court to imply a term into the contract which would limit that express right, particularly given the fact that the parties had accepted an obligation to work together in a spirit of trust, fairness and mutual co-operation but that obligation did not extend, as a matter of construction, to the termination of the contract.

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