Cases - Rainford House Ltd (in administrative receivership) v Cadogan Ltd
Record details
- Name
- Rainford House Ltd (in administrative receivership) v Cadogan Ltd
- Date
- [2002]
- Citation
- BLR416 (TCC)
- Legislation
- Keywords
- Adjudication - construction contract - enforcement of adjudication - enforcement of adjudicator's decision - insolvency - administrative receivership - stay of execution - application to lift stay - security for repayment
- Summary
-
Rainford were seeking to enforce the decision of an adjudicator to the effect that Cadogan should pay a sum of £77,350.75.
Rainford were in administrative receivership at the time of the application for summary judgment, which Cadogan relied upon in its claim for resisting the application.
The judge concluded that the evidence before him raised a strong prima facie case that Rainford were insolvent. That evidence had not been contradicted or explained. He therefore drew the inference that the present financial position of Rainford, as revealed by the evidence put before him, would not change, so he concluded that Rainford would be unable to repay the amount that the adjudicator decided was due.
The judge concluded that the appropriate course in the present case was to give summary judgment, but with a stay of execution pending the trial of the counterclaim subject to Rainford being given leave to apply in relation to the lifting of the stay to cover the possibility that Rainford may be able and willing to provide security for the repayment of an amount up to the sum that would otherwise be due.