Delayed in vain

An adjudicator decided that, on April 25, 2006, Essential Box’s repudiation had been wrong. In a second adjudication, the same adjudicator decided that Essential Box had to pay Gray £101,988.87 plus interest. Although payment of an adjudicator’s decision is usually immediate, Essential Box did not pay and on September 12, 2006 Gray started enforcement proceedings.

The court directed Essential to acknowledge service by September 18 and to produce any evidence to oppose the application by September 28. Essential’s solicitors wrote two letters, on September 14 and 19, did not produce any evidence, but failed to indicate the claim had been accepted.

Meanwhile, the parties tried to settle. On September 21, Essential Box offered to postpone payment until January 1, 2007. Gray’s counter offer involved stage payments. Neither was accepted so the case was set to continue. As late as the morning of October 10, Essential Box said it did not intend to oppose Gray’s enforcement application.

Instead, Essential Box wanted to argue about Gray’s legal costs, which amounted to £12,400.85 and had been compiled on the higher indemnity basis rather than the lower standard basis which was more usual. As Essential Box had delayed payment for months, it got short shrift from the judge.

He considered Gray’s legal costs but cut less than £600 off them and ordered Essential Box to pay £115,436.04 by October 25, 2006. In addition, Essential Box had to pay £11,842.85 in costs.

Moral: If you delay, you still pay.