Disputes Arising Under Two Contracts Referred To A Single Adjudicator

Originally published in Dispatch, March 2010 Dispatch highlights a selection of the important legal developments during the last month

Supablast (Nationwide) Ltd v Story Rail Ltd [2010] EWHC 56 TCC

Story resisted Supablast's attempts to enforce an adjudicator's decision on the grounds that the adjudicator did not have jurisdiction to decide the final account dispute as there were two contracts for the works, one for the blasting, painting and scaffolding and another for steelwork. Story argued that the adjudicator had been asked to decide more than one dispute in relation to two contracts. The works at the centre of the dispute were in relation to the substantial refurbishment of a railway bridge known as Carr Mill Viaduct in St Helens, Merseyside. The first time the two contracts point emerged was within Story's Response in the adjudication proceedings. As far as Supablast were concerned there was a single agreement and all elements of the works were covered by that agreement. Supablast emphasised that a single payment mechanism had been adopted by Story throughout the project which must support the contention that there was a single contract.

The Notice of Adjudication dated 3 September 2009 sought the determination of the Supablast final account pursuant to the subcontract. As part of the defence to Supablast's claims, Story raised the jurisdictional issue of multiple disputes and two contracts. Having received submissions from both parties, the adjudicator stated that he believed he had jurisdiction and that there was one sub-contract:

"I noted that at 16 January 2008 (the date of the Preliminary Meeting) the Responding Party was dealing with the works of grit blasting, painting, scaffolding and steel repair works as one body of work and I was of the view that the said minutes were evidence of this position. I noted that the Subcontract Price included the steel works sum; the sub contract period related to all work; the client's particular specification requirements included a steel and bolt specification (i.e. for the steel repair works); the name and contact details for the Responding Party's steelwork Contracts Manager was to be advised; and the number of men the Referring Party proposed to have on the steel repair works was minuted.

I also noted that the Referring Party's applications for interim payments sought monies for all works, including steel repair works and I noted that the Responding Party's payments and payment notices...