Stick to the Script! Adjudicator’s Detour into Unargued Points Breaches the Rules of Natural Justice

In LMND Group Ltd v John Henry Group Ltd, the TCC refused to enforce an adjudicator’s decision where the adjudicator had ‘gone off on a frolic of his own’ regarding a key defence, using his own points and case law that neither party had argued, nor given an opportunity to comment upon.

What happened?

LMND and John Henry had a framework agreement for sub-contract works which led to a series of adjudications This case arose from the fifth adjudication, a notified sum claim covering 15 payment applications, where LMND was awarded just under £238,000 plus interest. When LMND went to the TCC to enforce, John Henry resisted on the basis that the adjudicator had materially breached the rules of natural justice.

What did the TCC decide?

John Henry’s main defence was that LMND could not now attack the validity of the payment certificates when they had previously accepted over 120 earlier certificates in the same format without objection. The adjudicator rejected that defence by relying on his own reasoning and arguments, including a case he had found himself, without giving either party the chance to make submissions on any of these points.

The TCC found that the adjudicator’s failure to provide a fair hearing was a material breach of natural justice—material because, if John Henry’s defence had succeeded, LMND’s claim would have failed.

What can we learn from this?

If you win an adjudication, your victory is only as solid as the process that got you there. While the TCC is generally pro‑enforcement, it will refuse to enforce where an adjudicator decides a crucial issue on points which neither party had put forward, nor had the chance to address.

Need more clarity on adjudication matters? Don’t hesitate to get in touch. Our team is on hand to offer clear and commercial legal support.

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This article contains information of general interest about current legal issues, but does not provide legal advice. It is prepared for the general information of our clients and other interested parties. This article should not be relied upon in any specific situation without appropriate legal advice. If you require legal advice on any of the issues raised in this article, please contact one of our specialist construction lawyers.

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  • Meredith Peart

    Trainee Solicitor
  • Gary Ashton

    Partner