Cases - Beaufort Developments (NI) Ltd v Gilbert-Ash (NI) Ltd

Record details

Name

Beaufort Developments (NI) Ltd v Gilbert-Ash (NI) Ltd

Date

[1999]

Citation

1 AC 266, HL

Legislation

Arbitration Act (Northern Ireland) 1937

Keywords

Construction contracts – arbitration - certification – interim certificate – application for payment – allegation of negligence and breach of contract as set off/counterclaim - effect of arbitration clause – appointment of arbitrator – intervention by court - whether arbitrator has power to open up, review and revise certificate taking precedence over court’s inherent jurisdiction – validity of interim certificate

Summary

The House of Lords noted that it was possible that a provision making any certificate 'conclusive' could potentially cause injustice. For example, such a certificate might be given when the knowledge of an architect in respect of the state of the works was incomplete. However, the courts must give effect to the terms of the contract agreed upon between the parties. On the facts, no final certificate had been issued. As a matter of law, under the contract in question, neither interim certificates nor the certificate of practical completion were 'conclusive'.