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The High Court refused an application to enforce an adjudicator's decision relating to a payment dispute under a construction contract, where the paying party had failed to respond to a payment claim notice. Although the contractor argued it was automatically entitled to a default award of the claimed sum due to the employer's failure to reply, the court held that the Construction Contracts Act 2013 does not provide for such a default direction to pay. The court determined it would be judicial law-making to infer a sanction for non-response that the legislature had not specified, and that natural justice requires the opportunity to contest a claim on the merits unless expressly curtailed by statute. The refusal to enforce followed a rare departure from holding a party to concessions made before the adjudicator, justified only because the issue was of systemic importance to the adjudication process. The employer was successful in resisting enforcement, but may be liable for part of the contractor’s costs because of its previous concession before the adjudicator.
application to enforce adjudicator’s decision – construction contracts – payment dispute – payment claim notice – failure to respond – default decision – pay now – argue later principle – Construction Contracts Act 2013 – statutory interpretation – High Court discretion – summary enforcement – fair procedures – natural justice – waiver of jurisdictional objection – legal costs – volte-face – Order 56B of the RSC
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