Notice of intention should not be used as delaying tactic (South Coast Construction Ltd v Iverson Road Ltd)

Notice of intention should not be used as delaying tactic (South Coast Construction Ltd v Iverson Road Ltd)

Lucie Briggs of Atkin Chambers, who was counsel for South Coast Construction, considers the decision in South Coast Construction Ltd v Iverson Road Ltd which concerned an application to lift the administration moratorium to enforce an adjudicator’s decision.

Original news

South Coast Construction Ltd v Iverson Road Ltd [2017] EWHC 61 (TCC), [2017] All ER (D) 114 (Jan)

The Technology and Construction Court (TCC) held that, if a moratorium had continued in respect of the defendant company, the claimant company’s application, under paragraph 43(6)(b) of Schedule B1 to the Insolvency Act 1986 (IA 1986), for permission to proceed with proceedings to enforce an adjudicator’s award in the claimant’s favour would have been granted. The court further granted summary judgment in favour of the claimant to enforce the award where, applying settled law to the facts, the adjudicator had had the necessary jurisdiction.

What was the background to the case?

Iverson Road Ltd (Iverson Road) appointed South Coast Construction Ltd (South Coast) under a JCT Intermediate Building Contract as contractor for the new build construction of 33 apartments and three houses at 163 Iverson Road, London. The construction was to take place in three phases—the first two phases comprising three houses and a number of flats for private sale and the third phase comprising social flats. The works were subject to significant delay and disruption, primarily caused by the late provision of design information by Iverson Road and its design team.

The private sale units were completed on or around 22 June 2016. On 23 June 2016, South Coast suspended work on site as a result of Iverson Road’s non-payment of its application for payment no 36. On 1 July 2016, Iverson Road issued an instruction omitting the remainder of the works (to the value of £680,000) and proceeded to engage other contractors to complete the works. On 1 July 2016, Iverson Road also issued a certificate of practical completion, a certificate of non-completion, a letter setting out

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About the author:

Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.

Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.