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TCC enforces adjudicator's decision despite claimant's administration, imposing three-month stay; bare counterclaims are no shield; net balance requires substantive engagement (Malin v Volkerfitzpatrick)

Published on: 03 December 2024

Published by a LexisNexis Construction expert
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Article summary

Malin Industrial Concrete Floors Ltd (in Administration) v Volkerfitzpatrick Ltd [2024] EWHC 2890 (TCC)

What are the practical implications of this case?

It is settled law that the court will not move to enforce an adjudicator’s decision in favour of a claimant that is insolvent without first scrutinising the particular circumstances. Whether enforcement is appropriate will be shaped by several considerations:

  • the nature of the insolvency procedure to which the claimant is subject;
  • the presence of security for the judgment sum or for any cross-claim advanced by the defendant;
  • and the wording and effect of the adjudicator’s decision itself.

This decision offers a clear illustration of how the courts may evaluate these factors, while steering a course between the statutory adjudication framework (under the Housing Grants, Construction and Regeneration Act 1996) and the requirements of insolvency law…

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