KNS Industrial Services (Birmingham) Limited -v- Sindall Limited
Case reference:
[2000] EWHC Technology 75
Monday, 17 July 2000
Key terms: Jurisdiction - Expansion of dispute - Severance
KNS entered into a subcontract, incorporating DOM/1, to carry out mechanical and electrical works for Sindall. A dispute arose which KNS referred to adjudication. The Adjudicator made an allowance for non-compliant work and determined the amount owing to KNS was less than £5,000. KNS applied to enforce the decision arguing that the Adjudicator did not have jurisdiction to reduce the figure he awarded.
The Judge found that the Adjudicator had jurisdiction to deduct monies for non-compliant work. There was plainly a dispute about the valuation of the work and KNS were not entitled to be paid for work that was not in accordance with the contract. The Judge approved HHJ Thornton’s comments in Fastrack and stated that “the dispute referred to the adjudicator included any ground open to Sindall which would justify not paying KNS.” Further documents following the notice of adjudication, such as the referral notice “do not cut down or, indeed, enlarge the dispute (unless they contain an agreement to do so)”.
The Adjudicator’s decision was not able to severed: there was only one dispute even though it embraced a number of claims or issues. KNS were not entitled to sever parts of the Adjudicator’s apparent conclusions from others. KNS therefore had to accept the whole of the Adjudicator’s decision and, if it did not like it, to seek a remedy elsewhere.