Jurisdiction(s):
United Kingdom

Adjudicator fee liability final; TCC clarifies ‘substantial remedy’ and qualifying debts under the Late Payment of Commercial Debts (Interest) Act 1998 in A&V v J&B Hopkins

Published on: 25 September 2024

Published by a LexisNexis Construction expert

Legal News

Article summary

Court offers guidance on responsibility for adjudicators’ charges and ‘substantial’ remedies for late payment (A&V Building Solution v J&B Hopkins)

A&V Building Solution Limited v J&B Hopkins Ltd [2024] EWHC 2295 (TCC)

What are the practical implications of this case?

This judgment underscores that an adjudicator’s ruling on apportioning its fees and expenses between the parties is final and cannot be reopened in court or arbitration. Accordingly, a party who lost in adjudication and was directed to meet all (or part) of the adjudicator’s fee stays liable for that sum—even if it later succeeds in litigation or arbitration in overturning the adjudicator’s findings on the merits. That said, the court signalled there may now be room to revisit this position (rooted in the Scottish authority Castle Inns v Clark). It remains to be seen whether, in a future dispute, a court might be convinced to move away from Castle Inns, and on what rationale. The decision also sheds light on how a court may evaluate whether a contractual interest provision amounts to a ‘substantial remedy’ for the purposes of LPCD(I) A 1998. Comparatively few construction disputes have to date been considered on this point within this area of practice closely...

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