Adjudication with an Insolvent Party

26 July, 2020

Mr Adrian Williamson QC of Keating Chambers provided a useful talk in a webinar on the recent Supreme Court decision in Bresco Electrical Services Ltd (in Liquidation) v Michael J Lonsdale Electrcial) Ltd [2020] UKSC 25.

If an insolvent contracting party seeks to resolve its dispute by way of adjudication, then it was held in Bresco Electrical Services Ltd (in Liquidation) v Michael J Lonsdale (Electricial) Ltd [2020] UKSC 25 that the adjudicator can decide that dispute and in so doing, the Respondent can issue cross claims which does not arise out of the construction contract and that the adjudicator will need to have regard to them. What this seems to mean is that if, for example, an insolvent Sub-Contractor commences an adjudication against the Contractor, not only can the Contractor put up a defence in the form of, as is typical, the extra cost of completing the Sub-Contract Works following the Sub-Contractor becoming insolvent, followed by termination of their employment under the Sub-Contract, but also any other claims that the Contractor may have against the insolvent Sub-Contractor on other Sub-Contracts are permitted by way of a defence. We have attached the slide deck from Mr Adrian Williamson QC of Keating Chambers and the Supreme Court Judgement in the case for further reading

Attachments

  • Bresco Slides.pdf ( 915 KB )
  • Bresco v Lonsdale 2020 UKSC 25.pdf ( 104 KB )