Alexander Nissen QC, sitting as a deputy High Court judge in the Technology and Construction Court, reviewed the nature of the adjudication that took place between Matthew Harding and its employers where Mr Linnet acted as an adjudicator. The employer successfully enforced most recent adjudication through the case Paice and Another v Matthew J Harding [2016] EWHC 2495 where the court ordered Harding to pay the adjudicator's fees to the employers as outlined in the adjudication decision, being £11,721.60. Payment of the fees was delayed by Harding. The Claimant, Christopher Linnett Ltd, sought payment of statutory interest under the Late Payment of Commercial Debts (Interest) Act 1998 (“LPA”) that accrued during the period of delay in settling the payment of the fees, statutory compensation and debt recovery costs. The Defendant, Harding, resisted the claims.

Alexander Nissen QC held that the parties had entered into the adjudicator's agreement by conduct with the adjudicator as an individual, even though the adjudicator had participated in the adjudication process without prejudice to any jurisdictional objections that he may have. It was emphasised that the role of an adjudicator can only be performed by an individual. However, it is possible for an individual to enter into an adjudicator's agreement where the payment for the services is made to a firm or limited company. From the facts of the case, the agreement was made with Mr Linnett where the adjudicator's terms provided to both parties at the outset governed such agreement as there were no objections by either party.

It was also held that the adjudicator's agreement was a commercial contract for the supply of services as it was concluded in the course of a business by the Defendant who was acting in a business capacity. As the agreement was a commercial transaction, the court confirmed that the LPA had applied. Section 3 of the Act makes it clear that a debt created by virtue of an obligation under a contract to which the LPA applies "to pay the whole or any part of the contract price" is a "qualifying debt". Accordingly, the fees claimed by Mr Linnett are a qualifying debt for the purposes of Section 3 of the LPA. Since the adjudicator's terms outlined the rate as £215.00 per hour plus VAT, interest was calculated at 8.5% over base rate on the fees and the VAT. In accordance to Section 5(1) of the LPA, statutory compensation of £100 was due as the debt exceeded £10,000. With regard to the debt recovery costs, the Claimant was entitled to a reasonable sum being the time spent at his hourly rate in accordance to the adjudicator's agreement. Following this case, adjudicators will have to review their terms and conditions in detail.