Able Construction (UK) Ltd v Forest Property Development Ltd

An adjudicator’s decision will ordinarily be enforced summarily, subject to jurisdictional or natural-justice challenges. A later settlement does not invalidate the underlying decision where the adjudicator was appointed under the original construction contract and the settlement preserves enforcement on default. A short, self-contained factual dispute requiring oral evidence may be resolved at the enforcement hearing. Where a debtor has no substantive defence and has caused unnecessary recovery costs, indemnity costs may be appropriate.

The claimant obtained an adjudicator’s decision requiring the defendant to pay sums arising from a construction contract. The parties then entered into a written settlement providing for staged payments and preserving enforcement of the adjudicator’s decision on default.

The defendant failed to pay the second instalment. After a further payment of £10,000, it alleged that the parties had agreed a repayment arrangement. The defendant did not attend the enforcement hearing. The issues were whether the settlement affected enforcement, whether the alleged later agreement existed, and the appropriate interest and costs.

1. Subject to jurisdiction and natural justice, adjudication decisions are ordinarily enforced summarily.
2. The settlement did not invalidate the underlying decision. The adjudicator had been appointed under the original construction contract, and the settlement expressly preserved enforcement on default.
3. The alleged repayment agreement was not proved. A short factual dispute requiring oral evidence could be resolved at the enforcement hearing without an adjournment.
4. Interest under the Late Payment of Commercial Debts (Interest) Act 1998 was allowed. Applying Gray & Sons Builders (Bedford) Ltd v Essential Box Co Ltd, indemnity costs were appropriate.
5. Judgment was entered for the claimant in the sum of £100,613.69, with indemnity costs to be assessed.