Commercial

Award on adjudication in building contract - application for summary judgment - adjudicator's award ordinarily enforceable - insolvency rules to applyBouygues (UK) Ltd v Dahl- Jensen (UK) Ltd (in liquidation) CA: (Peter Gibson, Chadwick and Buxton LJJ): 31 July 2000

The parties referred a dispute under a building contract to an adjudicator who awarded a sum to the defendant.

The judge in the Technology and Construction Court entered summary judgment against the claimant, who then appealed to the Court of Appeal.

Stephen Furst QC (instructed by Masons) for Bouygues.

David Friedman QC and Mr Sean Brannigan (instructed by Hammond Suddards) for Dahl-Jensen.

Held, dismissing the appeal, that in order to decide whether a decision by an adjudicator on a dispute referred to him under s.108 of the Housing Grants, Construction and Regeneration Act 1996 was enforceable, the test was whether the adjudicator had answered the right question in the wrong way or whether he had answered the wrong question altogether, and the judge had to examine all the evidence as to whether the adjudicator had exceeded his jurisdiction; that a decision made under s.108 was meant as a quick and binding interim award to be complied with until the dispute was resolved; that such an award ought to be enforced by proceedings for summary judgment; that where, however, one party was in liquidation then r.4.90 of the Insolvency Rules 1986 (SI No 1925 of 1986) ought to apply; that, notwithstanding the more appropriate remedy, the court would not, however, interfere with the judge's discretion to grant summary judgment.