The Court of Appeal has upheld Mr Justice Fraser’s judgment in John Doyle Ltd (in liquidation) vs Erith Contractors Ltd [2020] EWHC 2451 (TCC) and provided useful guidance as to what constitutes adequate security in adjudication enforcement proceedings where the claimant is insolvent. The judgment also considers whether an insolvent company is ever entitled to summary judgment to enforce an adjudicator’s decision.

Previously, in Bresco vs Lonsdale, the Supreme Court ruled that insolvent parties could refer a dispute to adjudication, obtain a decision, and seek to enforce it against the other party (albeit recognising that hurdles remained for insolvent parties at the enforcement stage). This decision differed from the approach of the Technology and Construction Court and the Court of Appeal, both of which had found that adjudication should not be available to insolvent parties, and that adjudication proceedings could be injuncted on this basis

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