STATUTORY SCHEME APPLIES WHERE PARTIES ARE IN DISPUTE AS TO THE BASIS ON WHICH AN ADJUDICATION IS TO BE CONDUCTED

Pegram Shopfitters Ltd v Tally Wiejl (UK) Ltd [2003] BLR 296

In Pegram Shopfitters Ltd v Tally Wiejl (UK) Ltd [2003] BLR 296 Judge Thornton QC held that the defendant was not entitled to adopt the position that there was no contract between the parties when it had adopted the position before the adjudicator that the parties were in a contractual relationship. The courts have consistently refused to allow parties to depart from the position which they have assumed before the adjudicator. In this respect, it is important for parties to think carefully before adopting a position before an adjudicator. Further, Judge Thornton held that, in a case where the terms of the construction contract are not ‘readily ascertainable’ (because, for example, there is a dispute between the parties as to the terms that govern their relationship), the adjudication is to be conducted by the adjudicator on the basis that the statutory scheme is applicable.