Stubbs Rich Architect v W H Tolley & Son Limited (2001)

Wednesday, 8 August 2001

Key terms: 
Adjudicators fees - immunity - adjudication agreement - Section 108(4) - bad faith

This case concerns adjudicators fees. Mr Smart of Stubbs Rich Architects was appointed as adjudicator in respect of a dispute under two JCT minor works contracts between W H Tolley & Son Limited and Torridge District Council. The adjudicator delivered two written decisions in July 2000. Part of these decisions related to his fees, where he claimed the sum of £1,561.50 plus VAT. The respondent, W H Tolley & Son Limited paid the fees but alleged that they were unreasonably excessive. The respondent issued a claim to recover the alleged overpayment. On 28 November Deputy District Judge Guest heard the claim in the small claims court and found in favour of the respondent on two grounds. First, that an adjudicator does not as a matter of law enjoy an immunity from a claim that his hours and remuneration are unreasonable. Second, that Mr Smart's hours were in fact excessive. Mr Smart appealed.

On appeal, Mr Recorder Lane QC considered the question of immunity. He referred to the adjudication agreement which repeated the immunity provision set out in Section 108(4) of the Act. He considered that the words should be given their ordinary and natural meaning. On this basis he held that the adjudicator's fees therefore formed an integral part of the adjudication agreement and could only be challenged if the adjudicator had acted in bad faith. There was no suggestion or evidence that the adjudicator had acted in bad faith, and so the appeal succeeded and the adjudicator was awarded his fees. Many thanks to John Redmond of Osborne Clarke for supplying the case report.

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