The case of Lapp Industries Ltd (Lapp) vs 1st Formations Ltd (Formations) has a shopping trolley of examples not to be attempted if you want to upset an adjudicator’s binding decision. LAPP was awarded its £120,000 claim in November by the adjudicator. Formations refused to pay up. By April, they were ushered into the High Court. Here comes the spoiler: Formations lost again. Pay up, said the judge.

Formations ran arguments; I will tell you about them in a moment. First, though, the big overarching hurdle is a feature well rehearsed in adjudication law: “The objective which underlies the act (adjudication) requires the courts to respect and enforce the adjudicator’s decision”, except in very limited examples. Formations was searching for them.

First, it said that many disputes under numerous contracts between the two companies had been run in the same adjudication. That is not allowed under the rules of the Scheme (aka the Construction Scheme). Snag is, the behaviour was typical building industry stuff.

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