High Court ruling adds to act’s interpretation
William Fry LLP acted for Timber Frame Projects Limited t/a Timber Frame Ireland in before the High Court of an application to enforce an adjudicator's award.
The case arose from a dispute over a construction contract for the design and erection of a timber-frame structure at a residential site.
The employer terminated the contract, alleging repudiatory breach, and sought to recover the purchase price and compensation through adjudication.
Common law damages
However, the court sided with the contractor on a key issue — ruling that the adjudicator lacked jurisdiction as the claim did not relate to a ‘payment’ under the contract as defined by the act, but rather common-law damages.
While the employer argued for enforcement, the court held that only disputes involving contractual payments — not damages claims — fell within the adjudicator’s remit under section 6(1) of the act.
Unfairness
The contractor also alleged procedural unfairness, citing refusal of an extension and a failure to consider its defence.
The court rejected these claims, finding the adjudicator followed a fair process.
The court provisionally awarded the contractor two-thirds of its legal costs, acknowledging it succeeded on the key jurisdictional point.
This significant judgment was secured by a cross departmental William Fry team led by Jarleth Heneghan (projects and construction partner) and Gerard James (litigation and investigations partner) supported by consultant Cassandra Byrne and associate Eilis Quinlivan.
The decision is only the second time an application to enforce an adjudicator's award has been successfully resisted before the Irish courts since 2016.
The firm says that the judgment represents a significant development in the High Court's interpretation of the and the scope of payment disputes in respect of the statutory adjudication process.
It underscores the limits of adjudication under the 2013 act and the importance of properly framing claims as payment disputes under contract terms.