July 2009

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Construction & Engineering Team

Can You Lose Your Right to Adjudicate? - Post Script

Following our recent e-bulletin reporting on the Glasgow Sheriff Court decision in Phoenix Contracts (Leicester) Limited -v- Central Building Contractors (Glasgow) Limited, it seems that, for the moment at least, the answer to the above question has changed from "yes" to "no".

CBC's appeal against the interdict preventing it from proceeding with an adjudication, was yesterday granted by the Sheriff Principal. No written note of the Sheriff Principal's ruling is currently available, but it seems that, at least on the facts of that case, Phoenix was unable to sustain its argument that CBC's right to adjudicate had been lost.

We understand that leave was granted by the Sheriff Principal for his decision to be appealed to the Inner House of the Court of Session in Edinburgh, so if that option is taken up by CBC, we may not have heard the end of this matter yet.

In the meantime, if the right circumstances prevail, it may still be possible successfully to argue that your opponent's right to adjudicate has been lost; albeit we suspect that such circumstances would be very limited.

David Scott
Partner
Tel +44 (0)131 777 7023
Email david.scott@mcgrigors.com

Kenneth Hill
Solicitor
Tel +44 (0)131 777 7454
Email kenneth.hill@mcgrigors.com


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