All change — payment of adjudication decision does restart the clock for losing party
The Court of Appeal has now reversed the decision in Aspect Contracts (Asbestos) Ltd v Higgins Construction plc, concluding that payment of the adjudication decision constitutes a new cause of action and restarts the limitation clock for the paying party.
Aspect was the losing responding party in an adjudication in 2009 under the Scheme for Construction Contracts. The adjudicator found that Aspect was in breach of contract (back in 2004–05) for failing to conduct a proper and appropriate survey and failing to identify the presence of asbestos-containing material. A decision was issued in favour of Higgins, resulting in Aspect paying Higgins £658,017 (about £200,000 less than was being claimed) in August 2009.
Aspect then commenced legal proceedings in 2012 in the Technology and Construction Court for a negative declaration that it was not liable to Higgins for breach of contract. In doing so, it relied on an implied term that an unsuccessful party was entitled to have an adjudication dispute finally determined in court proceedings and was entitled to repayment of monies it had paid, if successful in those proceedings…
If you are registered and logged in to the site, click on the link below to read the rest of the Wragge & Co briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Wragge Lawrence Graham & Co
News from The Lawyer
Briefings from Wragge Lawrence Graham & Co
The changes likely to have most impact upon the automotive and asset finance industries.
Also: burden of proof in wrongful trading cases; and more.