Gray & Sons Builders (Bedford) Limited -v- Essential Box Company Limited
Case reference:
[2006] EWHC 2520 (TCC)
Wednesday, 11 October 2006
Key terms: Enforcement of adjudicator’s decision - no defence - indemnity costs
The defendant (LEBC) engaged the claimant (GSB) to demolish and rebuild Unit 6, Norse Road Industrial Estate, in Bedford. By a decision dated 26 April 2006 the adjudicator decided that the defendant had wrongfully repudiated the contract. In the second adjudication the same adjudicator decided that the sum of £101,988.87 plus interest was due from the defendant.
The sum was not paid and the claimant commenced enforcement proceedings. In this situation the defendant knew or ought to have known that they had no defence to the claim to enforce the adjudicator’s decision. Further it was unreasonable for the defendant to give the impression that this application was resisted letting the claimant incur costs only to arrive at the position the day before the hearing that they would not be contesting the application. Judgment given to in favour of claimant, costs awarded on an indemnity basis.
The sum was not paid and the claimant commenced enforcement proceedings. In this situation the defendant knew or ought to have known that they had no defence to the claim to enforce the adjudicator’s decision. Further it was unreasonable for the defendant to give the impression that this application was resisted letting the claimant incur costs only to arrive at the position the day before the hearing that they would not be contesting the application. Judgment given to in favour of claimant, costs awarded on an indemnity basis.