Cases - Baldwins Industrial Services plc v Barr Ltd

Record details

Name
Baldwins Industrial Services plc v Barr Ltd
Date
[2003]
Citation
BLR 176
Legislation
Keywords
Adjudication - construction contract - enforcement of adjudicator's decision - stay of execution - administrative receiver - jurisdiction - jurisdiction of adjudicator - stay of execution subject to conditions
Summary

Baldwins hired to Barr a 50-tonne crane, together with the driver, to be used by Barr at a building site. An incident occurred in which the crane was damaged. Baldwins sought from Barr the cost of repairs and lost hire charges, which Barr refused to pay. Baldwins referred the dispute to adjudication. The adjudicator decided that Barr were liable for approximately £185,000.

Shortly after the adjudicator published his decision, joint administrative receivers were appointed to Baldwins who subsequently sought to enforce the adjudicator's decision.

Barr raised two arguments in their attempts to resist summary judgment. Firstly, they argued that the hire of the crane was not a 'construction contract' within the terms of the Act. Secondly, they argued that there should be a stay of execution because of the appointment of administrative receivers to Baldwins.

With regard to the first point, the judge concluded that the contract was not one of mere delivery of plant to site but was for the supply of plant and labour. The contract was therefore a 'construction contract' within the meaning of the Act, and accordingly the adjudicator had jurisdiction.

With regard to the second point, the court agreed to stay execution of the principal sum awarded for a period of one month, subject to the following conditions:

  1. That Barr pay the principal sum into court within seven days.
  2. That Barr commence proceedings within one month from the date of judgment, failing which the money would be paid out to Baldwins.