Breach of natural justice does not impeach adjudicator's decision

The Technology and Construction Court (TCC) has enforced an adjudicator's decision arising from a dispute over a plant-hire contract. Akenhead J adopted a robust approach to questions of agency and no contract arguments on a summary judgment application under CPR Part 24. More importantly, the court accepted that the adjudicator had breached the rules of natural justice but it was insufficient to impeach his decision.

The hiring company, Lanstar, had argued that:

On the agency point, CRJ was successful in showing that there was a previous course of conduct between the parties, with Mr Vaughan entering into short-term hire contracts on behalf of Lanstar. There was also no evidence that Lanstar had advised CRJ of any limits on Mr Vaughan's authority.

With regard to the rules of natural justice, the court accepted that there had been a breach, but that it was not material to the adjudicator's decision:

In his concluding comments, Akenhead J said that there might be cases where an adjudicator's conduct in investigating his jurisdiction "displays such a lack of regard for the rules of natural justice" that his decision would be impeached, but this was not such a case.

Samuel Townend, counsel for Lanstar, commented that this appears to be a reference to conduct that is akin to bias which, it is well established, does taint the whole decision. Adjudicators must tread a fine line.

Case: CRJ Services Ltd v Lanstar Ltd (t/a CSG Lanstar) [2011] EWHC 972 (TCC) (19 April 2011).