Normally, when a building dispute arises that leads to an adjudicator making an award in favour of one party, the award is simply paid to the other party and that is that. However, sometimes things are more complicated.
Recently, a company went to the High Court arguing that it should not have to pay an adjudicator's award in favour of another company because it had counterclaims to pursue against that company and, critically, a winding up petition had been issued against the other company. It argued that it would be unfair for it to have to pay the sum decided by the adjudicator to a company which might be insolvent.
The Court refused to pre-judge the fate of the winding up petition but, since the company had not contributed to the potential insolvency of the other company, ordered that the payment should be 'stayed' until the outcome of the insolvency proceedings was known.
If you are owed money or are in dispute with a company that is threatened with insolvency, contact us for advice on how to protect your position. For further information, please contact Sydney Mitchell on 08081668827 or fill in our online enquiry form.
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