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The latest instalment in the saga of adjudications involving insolvent companies brings more questions than answers
Let me tell you about the recent case of John Doyle Construction Ltd vs Erith Construction Ltd, a groundworks dispute. But first a preamble.
The big advantage of 28-day adjudication is speed. Wallop, it’s all done – lightning fast. And it has worked better than any of us predicted when it started 20 years ago. That advantage of speed is its biggest hazard, though. A mistake when arguing or deciding the issues at pace is always on the cards. But the safety net is that the decision is only binding pro tem. It is open to a disappointed party to start afresh in litigation for a full-scale all-singing, all-dancing trial on the issues, while holding one’s nose on cost. A good outcome for the erstwhile aggrieved loser in the adjudication is to get an order for the previous winner to repay. Now comes the snag. What’s the score when the winner in the adjudication has got “your” money but it’s all gone … the outfit has gone bust? There is fat chance of getting the money returned.
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