Edmund Nuttall Ltd v Sevenoaks District Council

Friday, 14 April 2000

Key terms: 
Slip rule - Implied term

The Adjudicator made a mistake in part of his decision, awarding Edmund Nuttall a sum in respect of loss and expense (as a result of delay and disruption) which had already been paid on account. The Adjudicator immediately accepted an error had been made and took steps to correct it but added that he did not believe he had jurisdiction to amend his decision. Notwithstanding this, Edmund Nuttall brought enforcement proceedings for the full amount. The issues were:

  1. Whether the Adjudicator had jurisdiction to correct a mistake in his decision; and
  2. Whether there was an implied term allowing the deduction of liquidated damages from an order of the Adjudicator for payment.

On the first issue, the Judge considered the “slip rule” as decided in Bloor v Bowmer & Kirkland which “putting the matter at its lowest, it is at least arguable that it [the Bloor decision] is right”. A key consideration when determining an Adjudicator’s power to correct a decision is whether the correction is to be made within a reasonable time of giving the decision and that neither party could sensibly argue to the contrary.

On the second issue, the Judge held that the contract operated sufficiently without such a term. He was very wary about implying a term as to the circumstances in which liquidated damages may be deducted from a sum due to the contractor, when the contract contained detailed express provisions which dealt precisely with the issue.

Key contact

Tel: +44 (0)20 7421 1986
Tel: +44 (0)20 7421 1986