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Building Law Monthly

Unsuccessful party to adjudication has cause of action to recover overpayment

In Aspect Contracts (Asbestos) Ltd v Higgins Construction plc [2015] UKSC 38, [2015] 1 WLR 2961 the Supreme Court dismissed an appeal from the decision of the Court of Appeal (on which see our December 2013/January 2014 issue pp.1–4) and held that it was a necessary legal consequence of the Scheme for Construction Contracts that a party who has paid money pursuant to a decision of an adjudicator must have a directly enforceable right to recover any overpayment to which the adjudicator’s decision can be shown to have led, once there has been a final determination of the dispute. But the party who fails to recover all that it claimed in the adjudication does not acquire a fresh right to recover the balance of the sum claimed unless it institutes proceedings within the limitation period applicable to its underlying claim. A payee does not acquire by virtue of the receipt of payment a fresh right to claim any further balance alleged to be due.

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