Adjudication—resisting enforcement using a stay of execution
Adjudication—resisting enforcement using a stay of execution

The following Construction guidance note provides comprehensive and up to date legal information covering:

  • Adjudication—resisting enforcement using a stay of execution
  • What grounds might justify a stay of execution being ordered?
  • Applying for a stay of execution
  • Guiding principles for stay of execution of adjudication enforcement
  • Assessing the payee’s financial position
  • Claimant in liquidation, administration or a CVA
  • Risk of dissipation/fraud
  • Financial hardship for the paying party
  • Imminent resolution of other proceedings
  • A merits-based test?
  • more

Produced in association with 4 Pump Court

This Practice Note looks at preventing enforcement of an adjudication decision by obtaining a stay of execution. If a stay is ordered, then the court will still grant summary judgment to enforce the adjudicator’s decision but it will also stay the enforcement of that judgment (that is to say, effectively ‘pause’ the obligation to make payment).

This Practice Note considers the reasons why a stay might be ordered, the key principles that the court will have regard to when deciding whether to grant one, partial stays, and whether there needs to be an arguable case that the adjudication decision was wrong.

For guidance on other possible methods of resisting enforcement (eg using set off or seeking a declaration), see the Adjudication enforcement and challenges subtopic.

What grounds might justify a stay of execution being ordered?

A stay of execution of summary judgment proceedings enforcing an adjudicator’s decision will rarely be given.

The main grounds on which a stay may be ordered are:

  1. the probable inability of the successful party (the judgment creditor) to repay the judgment sum were the adjudication decision to be subsequently overturned when the dispute is finally resolved—where it is insolvent or in liquidation, administration, subject to a winding up petition or in a company voluntary arrangement (CVA)

  2. fraud or a risk of dissipation