In May 2011, Alexander & Law ('A&L') entered into a contract with Coveside (21BPR) Ltd (“Coveside”) for the specific purpose of developing 21 Buckingham Palace Road. The contract was later varied to include works on two other properties. Coveside terminated the contract on 25 March 2013 at which time A&L were already experiencing financial problems.

A number of disputes arose between the parties. In June 2013 A&L referred to adjudication the question of the validity of the termination and the withholding of sums due for payment at the end of March 2013. The adjudicator decided in favour of A&L and that Coveside was to pay to A&L around £215k (including retention monies and interest).

A&L issued proceedings seeking to enforce the decision by way of summary judgment. Coveside resisted the application on the basis that A&L would be unable to pay on account of the on-going winding-up proceedings against A&L which remained to be decided.

On consideration of the relevant authorities, the Judge disagreed with Coveside that the existence of a winding up petition was an absolute defence to summary judgment. The Judge granted summary judgment to A&L but was persuaded that A&L would not be in a position to repay the judgment sum. Issues of insolvency were to be properly considered on a cross-application for a stay of enforcement and the Judge therefore ordered a stay of execution until "all the disputes between the parties" had been resolved.