Adjudicator's decision enforced but stay of execution granted

In April 2009, PLC Construction reported on London Borough of Camden v Makers UK Ltd [2009] EWHC 605, where the Technology and Construction Court (TCC) granted an application to set aside judgment in default of defence but refused to impose a condition preventing Makers from adjudicating the same dispute. (See Legal update, TCC refuses to impose a condition preventing a party starting an adjudication.)

The parties continued their dispute and the matter came before the TCC again in October 2009.

As Camden anticipated in the April 2009 proceedings, Makers started an adjudication after that court hearing, but before the trial on liability. The adjudicator found in favour of Makers.

Camden did not comply with the adjudicator's decision. Instead, it issued proceedings. (The nature of the application is not clear from the judgment, but we anticipate it was a CPR Part 8 application requesting a stay of execution of the decision.) In response, Makers applied to enforce the adjudicator's decision and, acknowledging the court's finding in April that it was insolvent, requested payment into court or into an escrow account.

In a judgment that has only just been published, Akenhead J rejected Makers' application and agreed with Camden that, because of Makers' insolvency, the court should stay execution, pending the trial on liability.

The court urged the parties to "seriously consider mediation", even at the eleventh hour, warning them of the consequences of failing to do so (Camden had previously refused to mediate). On 22 October 2009, the Camden New Journal reported that the parties did find the time to talk and that the dispute has been settled, with Camden agreeing to pay Makers £1.75 million plus its costs.

Case: London Borough of Camden v Makers UK Ltd [2009] EWHC 2944 (TCC) (09 October 2009)