Martin Girt v Page Bentley
Friday, 12 April 2002
Key terms: Enforcement of Adjudicator's Decision - Scope of Jurisdiction - Paragraph 20 of the Scheme - CIS/Tax Status - breach of natural justice
The parties entered into a construction contract in July 2000. The Claimant, Martin Girt, was to supply to the Defendant, Page Bentley, a labour only plastering service in respect of a new building referred to as Kilder Moray Lodge in Scotland. Disputes arose in respect of non-payment by the Defendant. The RICS, at the request of the Claimant, appointed an adjudicator. The adjudicator issued a decision in the Claimant's favour.
The Defendant refused to pay. They challenged the decision on the basis that the adjudicator exceeded his jurisdiction and/or there was a breach of natural justice. The Defendant argued that the adjudicator had taken it upon himself to consider the tax status of the claim, and in particular whether the Claimant had a current CIS4 registration card or a CIS6 tax certificate. The adjudicator considered this issue, even though it had not been specifically raised by the parties.
HHJ Wilcox decided that the decision was clear and should be enforced. In essence, the Adjudicator found an entitlement to £53,371.49, but in the absence of the relevant certificate then the amount payable was £18,160.66. Paragraph 20 of the Scheme provided that the adjudicator could take into account other matters which he considered necessarily connected with the dispute. There was no breach of natural justice, as the only injustice would have been to the Claimant, and there was no arguable prejudice to the Defendant. The Claimant was only claiming the lesser sum of £18,160.66, and the Claimant was entitled to that sum.
The Defendant refused to pay. They challenged the decision on the basis that the adjudicator exceeded his jurisdiction and/or there was a breach of natural justice. The Defendant argued that the adjudicator had taken it upon himself to consider the tax status of the claim, and in particular whether the Claimant had a current CIS4 registration card or a CIS6 tax certificate. The adjudicator considered this issue, even though it had not been specifically raised by the parties.
HHJ Wilcox decided that the decision was clear and should be enforced. In essence, the Adjudicator found an entitlement to £53,371.49, but in the absence of the relevant certificate then the amount payable was £18,160.66. Paragraph 20 of the Scheme provided that the adjudicator could take into account other matters which he considered necessarily connected with the dispute. There was no breach of natural justice, as the only injustice would have been to the Claimant, and there was no arguable prejudice to the Defendant. The Claimant was only claiming the lesser sum of £18,160.66, and the Claimant was entitled to that sum.