MARS BLACK SHEEP HOTELS LTD v DOUGLAS & STEWART UK LTD

[2019] CSOH 64, Outer House, Court of Session, Lord Doherty, 13 August 2019

Adjudication – Misrepresentation – Availability of interdict to restrain a party from referring dispute to adjudication

After the defender had carried out substantial construction works at the pursuer's hotels, a dispute broke out between the parties. Each alleged that the other was in breach of contract. The defender served a notice of adjudication on the pursuer dated 4 July 2019 and served its notice of referral on 10 July. On 18 July, the pursuer claimed for the first time that it had been induced to enter into the contract with the defender by various misrepresentations made by the defender. It sought an interdict against the defender taking any steps in furtherance of the adjudication which it had commenced, taking any steps to enforce any award resulting from that adjudication and otherwise referring any dispute as to or arising from the contract to adjudication. The pursuer also sought to suspend the existing adjudication process. At an ex parte hearing on 23 July Lady Wolffe granted to the pursuer an interim interdict and interim suspension. The case then came before Lord Doherty in the present proceedings, who recalled the interim interdict and interim suspension (although he also granted the pursuer leave to reclaim or appeal against his decision).