Quality Street employed Elmwood under to perform alteration works. After completion, a dispute arose over the sum due to Elmwood. The parties then exchanged correspondence and had meetings and further payments were made. Notwithstanding this, Elmwood began court proceedings claiming further sums and then sought to refer two disputes to adjudication.

The Judge was satisfied that Quality Street had a case to try regarding the question of whether the dispute between the parties was the subject of a compromise agreement. It was therefore accepted that the Adjudicator’s jurisdiction could be ousted by reaching a compromise agreement in relation to a dispute which might otherwise be referred to him. Therefore, for expediency, the issue of whether a compromise agreement was reached should be resolved by the court.