“The Adjudicator in this Sub-Contract is one of the following to be agreed between the Contractor and the Sub-Contractor • Brian Eggleston (CEng, FICE, FIStructE, FCIArb) […]” • Brian Eggleston (CEng, FICE, FIStructE, FCIArb) […]”
“12. It is trite law that adjudication is a speedy process designed only to provide what is called “interim finality” on construction disputes. Parliament intended that the parties should be given a quick answer, and that quick answer should be binding on the parties until the dispute, whatever it may be, is resolved finally either by litigation or arbitration. It has been said in a case concerning what is called the statutory Scheme, namely the statutory instrument entitled theScheme for Construction Contracts (England and Wales) Regulations 1998 (SI 1998/649) by Chadwick LJ in Carillion ConstructionLimited v. Devonport Royal Dockyard Limited[2006] BLR 15 , paragraph 86 that “the need to have the “right” answer has been subordinated to the need to have an answer quickly”
“For the reasons set out above, the Adjudicator did not keep the requirements of natural justice in mind when writing his decision.”
“the main focus of Beumer’s resistance to Vinci’s attempt to enforce the Adjudicator’s decision stating that Vinci was entitled to recover£9,671,500 is that the Adjudicator failed to follow the rules of natural justice in reaching his decision.”
“These three aspects of his Decision constitute the basis upon which Beumer resists enforcement by Vinci of that Decision in these proceedings. Those three aspects are: (i) The fact that, in his Decision in the Seventh Adjudication, the Adjudicator made findings which were inconsistent with findings made in a previous adjudication, with the result that the Adjudicator not only decided something which had already been decided but did so in a manner inconsistent with the previous Decision; (ii) The Adjudicator did not give any or any adequate reasons for his decision in relation to the key issues in the dispute; and (iii) The Adjudicator did not disclose or order Vinci to disclose material from a previous adjudication (between Vinci and another sub-contractor) which Beumer had good reason to believe would have demonstrated that the case Vinci was advancing in this adjudication was inconsistent with the case it had advanced in that other adjudication.”
“Beumer contends that each of these complaints constitutes a breach of natural justice and that, as a result, the decision is not and should not be enforceable by the Court.”
“This is because there are two relevant matter [sic] which stand out above all the others. The first is the restriction arising from clause 61.7 of the Sub-contract which states that: “A compensation event is not notified after the defects date” and, as noted above in paragraph 7.15 of this Decision, the defects date for the Sub-contract is14 October 2017 . The second is that Beumer’s claims for extensions of time fall well short of the basic requirements for supporting evidence and delay analysis.” “A compensation event is not notified after the defects date”
“At paragraphs 9 - 12 of its Opening “Executive Summary”, Vinci expresses in general terms, its position in respect of the Referred Matters, saying:… In relation to C.I.s 119 - 120 and 127 Vinci accepts that these are Compensation Events and at no point has Vinci ever denied that these are not Compensation Events. Accordingly, it is Vinci’s position that there is no dispute between the parties as the existence or otherwise of these Compensation Events claimed by Beumer.”
“If the Adjudicator relies upon such a point or issue (either of fact or law) and his whole decision stems from his finding on that point of issue, it will be decisive. A point or issue might well be of considerable potential importance to the outcome if it is not decisive of the whole decision but if it goes to important parts of the decision. Even if an Adjudicator’s breach of the rules of natural justice relates only to a material or actual or potentially important part of the decision that can be enough to lead to the decision becoming wholly unenforceable essentially because the parties (or at least the losing party) and the Court can have no confidence in the fairness of the decision making process.”
“I take a very dim view of the propriety of behaviour where Party A says in one set of adjudication proceedings with Party B “the works were complete on16 December 2015 ” and, in relation to the very same works (or at least a sub-set of the works) on the very same project states in yet another set of adjudication proceedings with Party C “the works are not yet complete, you are liable to pay me liquidated damages.”
“The point was this: Balfour Beatty claimed against Vinci relief in respect of compensation events relating to the fire alarm installation. If Balfour Beatty delayed the fire alarm installations for reasons which were Balfour Beatty’s responsibility, that was likely to have a knock-on effect delaying Beumer in the completion of the works.”
“It is Beumer’s understanding that Vinci did indeed contend that Balfour Beatty was guilty of culpable delay and therefore that (as between Balfour Beatty and Vinci) there was no compensation event.”
“… the Adjudicator simply never dealt with the point made repeatedly that Vinci (and he) had in their possession a Decision which there was good reason to suppose contained evidence of an inconsistent position taken by Vinci. This injustice could, and should, have been removed by ordering disclosure of the material in the Balfour Beatty Adjudication or disclose that Decision himself, not to do one or other was fundamentally unfair.”
“The Adjudicator may … • Instruct a Party to provide further information related to the dispute within a stated time; and • Instruct a Party to take any other action which he considers necessary to reach his decision and to do so within a stated time.”
“I was not [and still am not] clear on how Beumer could properly be alleging inconsistency given that my team had re-reviewed the BBESL documentation and not found any inconsistency” and he then sets out paragraph 12 of a letter from his firm dated28th March 2018 which says: “In light of the challenge that has been made, we have reviewed the documents from BBESL adjudication and confirm that we do not consider there to be any inconsistency between the submissions made by Vinci in that adjudication and the case made by Vinci in the Referral Notice and supporting documentation. In order to allay concerns, we further confirm that to avoid any conceivable potential for unfairness we are prepared to re-review the BBESL adjudication documents in light of any Reply submitted by Vinci in this adjudication and to undertake that if Vinci makes submissions that are inconsistent with the submissions in the BBESL adjudication, Vinci will disclose any documents submitted in the BBESL adjudication with which the submissions in this adjudication are inconsistent…”
“55. However, the Adjudicator neither ordered disclosure of the material nor resigned and Section 2 of his Decision in A7 deals with this. 56. It was not clear to me at the time, nor is it since on re-reading the correspondence, why the Adjudicator did not take either of the steps requested by Beumer.”