The following Construction guidance note provides comprehensive and up to date legal information covering:
Produced in association with 4 Pump Court
This Practice Note looks at preventing enforcement of an adjudication through a stay of execution. It considers the key principles that the court will have regard to when determining whether to grant a stay and assessing the judgment creditor’s financial position, including whether it is in liquidation, administration, subject to a winding up petition or in a Company Voluntary Arrangement (CVA).
This Practice Note also discusses partial stays, applications for a stay where this is a risk of dissipation of the judgment sum, whether there needs to be an arguable case that the decision was wrong, and the impact of hardship for the paying party or an imminent resolution of related proceedings.
For guidance on other methods of resisting enforcement (eg using set-off or seeking a declaration), see the Enforcement of an adjudication decision subtopic.
If the receiving party is insolvent, or its financial circumstances are such that if an adjudicator's decision is complied with the paying party is unlikely to recover its money, or at least a substantial part of it, were the decision to be subsequently overturned when the dispute is finally resolved, then the court may grant summary judgment but stay the enforcement of that judgment (that is to say, effectively ‘pause’ the obligation to make payment).
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