Back in August, we wrote a blog about adjudication and liquidation, following the judgment in the TCC case of Michael J. Lonsdale (Electrical) Limited v Bresco Electrical Services Limited (in Liquidation) [2018] EWHC 2043 (TCC) (Lonsdale).

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In August 2018, in Michael J Lonsdale (Electrical) Limited v Bresco Electrical Services Limited (In Liquidation) 1 Mr Justice Fraser had the opportunity in the context of CPR Part 8 proceedings to clarify whether or not a liquidator can pursue a claim in adjudication arising out of a construction contract.

• Introduction
• Dispute

Every now and again our clients find themselves faced with a claim, or the threat of a claim, arising out of a construction contract where the party claiming money is in liquidation. In these circumstances it can be difficult to explain that a party in liquidation has no right to adjudicate a claim given that the right to adjudicate a dispute under a construction contract arises, according to the Construction Act, “at any time”. Hopefully any uncertainty surrounding this issue has now been finally resolved.

Introduction

Directors should seek advice from in-house or external legal professionals whenever executing documents, even if they believe that they understand the consequences of what they are signing. They should also record their decision-making process to ensure that they comply with the Companies (Miscellaneous Reporting) Regulations 2018. Wessely v White serves as a timely warning in this regard.(1)

• Introduction
• Recent case
• Court's obiter comments
• Comment

Introduction

Introduction

It is generally the case (though not always!) that courts are reluctant to enforce monetary award adjudication decisions in favour of companies in liquidation (CILs). This is because of the uncertainty surrounding the CIL’s ability to repay those sums should it later transpire it was not entitled to the award.

• Introduction
• Background