Cases - Levolux A T Ltd v Ferson Contractors Ltd
Record details
- Name
- Levolux A T Ltd v Ferson Contractors Ltd
- Date
- [2003]; (2003); (2003); (2003)
- Citation
- EWCA Civ 11; 05 EG 145 (CS); CILL 1956; BLR 118; 86 Con LR 98
- Legislation
- Keywords
- Construction contracts - adjudication - summary judgment - enforcement - sub-contract - entitlement to termination - whether termination valid - sub-contract - GC/Works/Subcontract - withholding payment - Housing Grants, Construction and Regeneration Act 1996, sections 108 and 111
- Summary
-
The Court of Appeal had to decide whether to enforce an adjudicator's decision when it conflicted with the terms of the contract the parties had entered into.
An adjudicator had made a decision in favour of Levolux. However, Ferson had attempted to use clause 29.8 of the contract to resist payment - the clause said that if the contractor shall determine for any reason, all sums of money that are due to him shall cease to be payable.
The judge at first instance found that section 108(3) of the Housing Grants, Construction and Regeneration Act 1996 was plain: an adjudicator's decision is binding until finally determined by litigation or arbitration. 'The contract must be construed so as to give effect to the intention of Parliament rather than to defeat it.'
The Court of Appeal upheld the judge's decision, dismissing the appeal.