Cases - Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd

Record details

Name

Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd

Date

[2020]

Citation

UKSC 25

Keywords

Disputes - adjudication - subcontractor - notice of intention to adjudicate - liquidation

Summary

Bresco were a subcontractor to Lonsdale pursuant to a subcontract dated 2014.

Bresco ceased to attend site in December 2014 with Bresco and Lonsdale each making substantial sums against the other.

In 2015 Bresco went into creditor’s voluntary liquidation.

In 2018 Bresco served a notice of intention to adjudicate, which Lonsdale sought to block with an application for an injunction on the basis that Bresco were in liquidation.

Lonsdale succeeded at first instance.

The reasoning of that decision was partially overturned on appeal, although the injunction remained in place.

The Supreme Court fully overturned the decision at first instance and withdrew the injunction.

It has now been finally established that a claimant in liquidation can refer a dispute to adjudication for the purposes of establishing the debt, although a decision by an adjudicator that a responding party make payment will generally not be upheld unless the liquidator is able to provide adequate security to cover the eventuality that the responding party pursues the claim in court and secures a decision that money is to be repaid.