Contractor loses bid to delay £1.6m adjudication payment
Summary
The Technology and Construction Court refused to delay enforcement of a £1.6m adjudication judgment against LUC Construction, despite its argument that immediate payment could threaten its business. The court held that a party claiming inability to pay must evidence why funds cannot be raised from shareholders or other sources, and found LUC had not done so.
Why it matters
The decision reinforces the high threshold for obtaining a stay of enforcement in construction adjudication disputes. Surveyors involved in contract administration, payment notices and final account disputes should note the court’s emphasis on evidence of funding capacity and the practical risks of SPV counterparties.
Key points
- High Court refused to stay enforcement of a £1.6m adjudication award.
- Court said inability-to-pay arguments must address potential funding from shareholders or related parties.
- LUC Construction had argued payment could force it to stop trading and affect arbitration rights.
- The judge noted Avanton was an SPV, but found the repayment risk was not shown to be materially different from the risk accepted at contract outset.
- The court did not decide the underlying jurisdictional challenge to earlier adjudications.
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