Read the full judgment text of HCCT000077/1996 on BabelCite. This HIGH COURT judgment was delivered on 26 February 1997 before the Hon Mr Justice Findlay.
Arbitration — Building Sub-contract — Pay-when-paid clause — Cause of Action — Pleadings — Fair Hearing — Appeal against Arbitration Award. The respondent, as nominated sub-contractor under a building sub-contract, claimed outstanding fees based on an architect's final certificate dated August 1993. The applicant main contractor denied the claim relying on the timing of payment by the employer and alleged delay by the respondent. The arbitrator issued a direction limiting claims to those pleaded, but subsequently considered new causes of action introduced in the reply without letting the applicant respond. The court granted leave to appeal on the ground of absence of fair hearing, holding that the applicant was denied the chance to address these new claims. The court dismissed applicant's grounds on delay and pay-when-paid clause as not plainly wrong findings of fact. The award was remitted for reconsideration with directions for the parties to plead fully and submit further evidence. An order nisi was made for costs to the applicant.
Legal issues: Absence of Fair Hearing · Delay Allegation · Pay-when-paid Clause Application
Outcome: Appeal allowed on ground of absence of fair hearing; award remitted to arbitrator for reconsideration.