Monthly Archives: April 2013

REUTERS | Fayaz Kabli

AA Milne, When we were very young:

“They’re changing guard at Buckingham Palace – Christopher Robin went down with Alice.”

The Palace guards may change daily but we all know that the pace of change is much slower in the legal world. That said, the sweeping reforms of the civil justice system, which came into force on 1 April under the auspices of the Jackson reforms, look set to have a significant impact on practitioners. We highlighted just a few issues for those using the TCC and Lord Dyson warned about non-compliance with the new rules. We also got a sneak-preview of how the courts are likely to deal with approved budgets under the new costs management rules. Continue reading

REUTERS | Damir Sagolj

The TCC’s judgment in RWE Npower Renewables Ltd v J N Bentley Ltd got me thinking about the possibility of “appealing” an adjudicator’s decision. While we all accept that adjudicators’ decisions are of a temporary or interim binding nature, in practice, court or arbitration proceedings rarely follow on from the majority of decisions. That means many decisions stand as determining the parties’ rights and obligations forever (which sounds a very long time!).

But what if you don’t like the adjudicator’s decision, is there anything else you can do rather than proceeding to a full blown trial? Continue reading

REUTERS | Ricardo Moraes

In January this year, I wrote about Compass Group (trading as Medirest) v Mid Essex Hospital where the High Court enforced a good faith clause and criticised a party’s conduct (involving a £84,450 chocolate mousse deduction). Having suggested that the courts are now more open to such arguments, the Court of Appeal reversed the decision in March, indicating the opposite.

So is that the end of the road for good faith clauses? Not quite, I suspect, both because of the specific clause used in Medirest and another High Court decision in Yam Seng PTE v International Trade Corporation. Continue reading

REUTERS |

The uncertainty surrounding how to enforce dispute adjudication board (DAB) decisions that are binding but not yet final is a favourite topic for debate amongst FIDIC practitioners. However, it is more than simply an academic point. Arbitral tribunals are repeatedly grappling with it and are broadly divided, adding to the uncertainty. That FIDIC has recently (on 1 April 2013) taken the unusual step of publishing a Guidance Memorandum on this narrow issue underlines that it is a real concern for users of FIDIC contracts. This led me to ask whether this guidance moves matters forward?

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REUTERS | Tobias Schwarz

A couple of weeks ago I went to Edinburgh to give a talk to the Society of Construction Law on global claims in the wake of Walter Lilly v Mackay. However, both before and after the talk, a number of the Scottish delegates were more interested in talking about their very own Mackay case, White and Mackay v Blyth & Blyth, as Lord Malcolm’s latest judgment had been published the day before.

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REUTERS | Andrew Winning

Adjudication enforcement decisions often throw up interesting discussion points and two judgments from last week are no exception. The first concerned Lord Malcolm’s decision in Whyte and Mackay v Blyth & Blyth, where the court considered the adjudicator had breached the rules of natural justice as there was a “very significant omission” in his decision and reasoning. While that of itself would make a good blog topic (and is something Jonathan will be looking at), it was the application of Article 1 of the First Protocol of the European Convention on Human Rights (ECHR) that is more likely to attract commentators north and south of the border. In fact, Alastair Walls has written about it today.

The second judgment, Ramsey J’s decision in Willmott Dixon v Newlon Housing Trust, is the one I’m interested in. Continue reading

REUTERS | Alex Domanski

I recently advised on the question of whether a liquidated damages clause was a penalty. My attention was drawn to the recent case of Cavendish Square Holdings BV and another v El Makdessi. You may not have come across this judgment, as it is not a construction case, and does not concern liquidated damages. Rather, the question of whether a clause was a penalty arose in the context of a restraint of trade clause. Nevertheless, the court’s decision provides an important reminder to those negotiating liquidated damages clauses in construction contracts.

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