Breyer engaged CG under a subcontract (“the Subcontract”) to carry out interior refurbishment works to kitchens and bathrooms in a development. Clause 8 of the Subcontract contained payment provisions, and Clause 16 provided that where the Subcontract is determined, CG would be entitled to be paid for the works plus any loss and expense suffered as a result of the determination.

Disputes arose over valuations and payment. In early January 2013, the parties met and it was agreed that CG would not return to site. CG said that this was a mutually agreed termination and so they were entitled to be paid for the work carried out to date. Breyer argued there had been a repudiation which had been accepted. CG issued its draft final account valuing the works at approx £458,000, with a balance of £188,000 being due. Breyer assessed the account as an overpayment to CG by £184,000. CG referred the dispute to adjudication.

The adjudicator decided that there was a supplemental agreement terminating the Subcontract, rather than a repudiatory breach which Breyer accepted. Therefore payment was due under clause 8 rather than clause 16. The adjudicator awarded CG the amount due under the draft final account (£188,000).

Breyer did not pay and CG commenced enforcement proceedings. Bryer resisted enforcement on the basis that the adjudicator had (a) exceeded his jurisdiction as Breyer had not argued that clause 8 applied and (b) committed a material breach of the rules of natural justice as the parties had not been afforded the opportunity to consider the adjudicator’s approach to payment under clause 8.

The Court rejected Breyer’s arguments and proceeded to enforce the adjudicator’s decision. The adjudicator had not exceeded his jurisdiction as the dispute referred was CG’s claim set out in its draft final account and it was wide enough to allow the adjudicator to decide the amount due to CG. The Court also found that the adjudicator was acting in accordance with the rules of natural justice, or at the very least it had not been established that he was not so acting.