Edmund Nuttall Limited -v- R G Carter Limited

Case reference: 
[2002] EWHC 400 (TCC)
Thursday, 21 March 2002

Key terms: 
Meaning of "dispute"- distinction between "claim" and "dispute"

RG Carter was the main contractor for a new Civic Community Centre and Library. Carter had entered into a sub-contract with Nuttall for concrete works to the substructure, building frame and various ancillary works. The sub-contract incorporated the DOM/1 Sub-contract Conditions and clause 38a related to the referral of disputes to adjudication. The parties had already referred several matters to adjudication. The subject of the adjudication relating to this judgment arose from an application for payment in May 2001, together with additional costs relating to delay and disruption. The breakdown of that claim was provided in May 2001.

There were some further exchanges in correspondence before a Notice of Adjudication was issued on 14th December 2001. The Claimant's experts prepared a report in support of the claim, but adopting different figures and relying upon several different matters in support of the claim. The Defendants objected on the basis that the expert's report set out a new claim, which Carter had not seen before, and therefore did not relate to the dispute referred to adjudication. The Adjudicator continued and made a decision.

HHJ Seymour QC considered the authorities relating to the meaning of disputes, and claims, and came to the conclusion that a claim needs to be formulated and put to the other party and does not become a "dispute" until that other party has had an opportunity to consider the claim and reject it. Failure to respond within a reasonable time will amount to a rejection. HHJ Seymour QC held that the claim advanced in the expert's report was different to the original claim referred in the Notice of Adjudication. He therefore held that the Adjudicator's decision was made without jurisdiction and was therefore unenforceable.

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