In John Doyle Construction Limited (in Liquidation) v Erith Contractors Ltd [2021] EWCA Civ 1452 Riaz Hussain QC appeared in the Court of Appeal for the successful Respondent. In an important Judgment the Court of Appeal considered the security requirements for a Party in liquidation seeking to enforce an Adjudicator’s Decision.
The Court of Appeal held that clear and unequivocal security for the Decision Sum and also costs of final proceedings must be provided. That payment into escrow or Court by the Defendant is unlikely to be satisfactory security. Significantly the Court of Appeal considered that the Supreme Court in Bresco has not decided whether even with adequate security a Party in liquidation can enforce an Adjudicator’s Decision. Both Coulson LJ and Lewison LJ in reasoned judgments considered that this may not be permissible under insolvency law and in particular Rule 14.25 of the Insolvency Rules 2016.
This is a highly significant case both on security and also the status of Adjudicator’s decisions in favour of Parties in liquidation. It will be of interest to construction and insolvency practitioners alike.
Riaz was instructed for the Respondent by Edward Shaw and Hadley Hickson of DLA Piper.
Click here to read the full judgment: John Doyle Construction Ltd v Erith Contractors Ltd [2021] EWCA Civ 1452 (07 October 2021)
