Electrical specialist loses £194,000 distillery payment claim
CEL was attempting to recover sums said to be payable for electrical works relating to a project on an alcohol distillery in North Yorkshire.
JMD developments provides new-build and refurbishment works including commercial, residential and civil engineering projects.
A judge found at the end of September that with no adjudication agreement, the decision of the adjudicator was not enforceable, so CEL was not entitled to payment.
CEL conceded there was no statutory right to an adjudication, as the works were excluded under s.105(c)(ii) of the Housing Grants, Construction and Regeneration Act 1996.
CEL instead sought to rely on an ad hoc adjudication agreement, on the grounds that an email had been sent by an employee of JMD to the adjudicator, Mr Lawless, and that JMD had paid a £6,000 appointment fee in advance.
JMD countered that an ad hoc agreement had not existed. The judge made the distinction between an adjudication agreement and an agreement with the adjudicator, finding that there was no ad hoc agreement on which CEL could rely.
This means JMD was not bound by the decision, so the judgement application was rejected.