In Essential Living (Greenwich) Ltd v Elements (Europe) Ltd [2022] EWHC 1400 (TCC), Mathias Cheung recently appeared for the Claimant (Essential Living) in the TCC in a Part 8 claim for declarations relating to the effect of a previous adjudication decision on the parties’ ongoing final account dispute.
This is an important case which provides helpful clarification on the binding effect of adjudication decisions on interim accounts for the purpose of subsequent final account assessments.
The dispute arises from a mixed-use development in Southwest London known as Greenwich Creekside, and Essential Living engaged the Defendant (Elements) in December 2016 to carry out the design and construction of the modular units for the project under an amended JCT Construction Management Trade Contract 2011.
Prior to practical completion in May 2019, the parties went through a lengthy adjudication before Dr Franco Mastrandrea from April to July 2019 on the last interim valuation account. In his Decision, the Adjudicator determined (among other things) Elements’ variation and extension of time claims and also awarded liquidated damages for delay.
In the final accounting process conducted by the Construction Manager, Elements sought to reopen and reargue the various variations and delay matters which were determined by the Adjudication Decision. In anticipation of a potential further adjudication on such matters, Essential Living sought Part 8 declarations from the Court to the effect that Elements remained bound by the prior Adjudication Decision.
O’Farrell J held, in summary, that:
Mathias was instructed for the Claimant by Taylor Wessing LLP.
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