‘DISPUTE’ FOUND TO EXIST BETWEEN THE PARTIES

Orange EBS Ltd v ABB Ltd [2003] BLR 323

In Orange EBS Ltd v ABB Ltd [2003] BLR 323 Her Honour Judge Frances Kirkham, followed the approach adopted by Mr Justice Forbes in Beck Peppiatt Ltd v Norwest Holst Construction Ltd (above, p. 5) and the decision of the Court of Appeal in Halki Shipping Corporation v Sopex Oils Ltd [1998] 1 WLR 727 in concluding that the word ‘dispute’ should be given its ordinary meaning and that there is, for this purpose, a dispute ‘once money is claimed unless and until the defendants admit that the sum is due and payable’. However, at the same time, when deciding whether or not there is a ‘dispute’ the court must have regard to the nature of the claim that has been referred to adjudication. Where the claim is one to recover a sum due under the contract, there cannot generally be a dispute between the parties before a claim has been made for the sum alleged to be due. However, once the claim has been made and not admitted or paid, a court is likely to be willing to conclude that there is a dispute in existence between the parties and is unlikely to be receptive to a claim by the defendant that it needs greater time in order to evaluate the nature of the claim that has been made.