BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
TECHNOLOGY AND CONSTRUCTION COURT (KBD)
B e f o r e :
____________________
SUDLOWS LIMITED |
Claimant |
|
- and - |
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GLOBAL SWITCH ESTATES 1 LIMITED |
Defendant |
____________________
Alexander Nissen KC (instructed by Macfarlanes LLP, Solicitors) for the Defendant
Hearing date: 13 December 2022
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Crown Copyright ©
Mr Justice Waksman:
INTRODUCTION
BACKGROUND
The Works
Adjudication 5
"5.1 A dispute has arisen between the Parties in relation to Sudlows' entitlement to an Extension of Time to the Completion Date for Section 2 in respect of delays up to 18 January 2021.
5.2 This Adjudication is concerned only with delays caused to the Completion Date for the Section 2 Works and only in respect of delays occurring up to 18 January."
"Changes and any other matters or instructions which under these Conditions are to be treated as, or as requiring, a Change" (Clause 2.26.1); and
"any impediment, prevention or default, whether by act or omission, by the Employer or any of the Employer's Persons…" (Clause 2.26.6).
"Changes and any other matters or instructions which under these Conditions are to be treated as, or as requiring, a Change" (Clause 4.21.1); and
"any impediment, prevention or default, whether by act or omission, by the Employer or any of the Employer's Persons…" (Clause 4.21.5).
"9. ENTITLEMENT TO EXTENSION OF TIME: RELEVANT EVENTS
9.1. The causes of the further delay to the Completion of the Section 2 Works during Windows 14 to 29, as outlined above, constitute Relevant Events in accordance with clause 2.26 of the Contract.
9.2 The defective HV-B ductwork provided by Global Switch
9.2.1 The defective HV-B ductwork provided by Global Switch is a Relevant Event pursuant to clause 2.26.1 and/or clause 2.26.6, as follows.
9.2.2 Global Switch's failure to complete its enabling works in respect of the underground duct network between the LON (E) building and the LON (N) building prior to Sudlows commencing works on site and Global Switch's subsequent failure to complete such works timeously following Sudlows commencing works on site…is a Relevant Event…
9.2.3 Global Switch's failure to complete its enabling works in respect of the underground duct network between the LON (N) building and the EPC and Global Switch's subsequent instructions to Sudlows to undertake the works in place of its enabling contractor…is a Relevant Event…
9.2.4 The defective duct network provided by Global Switch, Global Switch's instructions to Sudlows to install replacement cables in the defective duct network without providing Sudlows with accurate as-built information in respect of the defective duct network provided by Global Switch and Global Switch's failure to instruct Sudlows accordingly, once Sudlows had evidenced the defective nature of Global Switch's duct network…constitutes a Relevant Event…
9.2.5 Global Switch's removal of the HV-B cable installation works from Sudlows' scope of works and its instruction to others to carry out those works in place of Sudlows and Global Switch's refusal to take responsibility for the novel and untested installation undertaken on its behalf, thus preventing Sudlows from completing its works and achieving Practical Completion…is a Relevant Event…"
"12.29 Scope of Sudlows' EOT claim in this Adjudication.
12.30 The dispute Section 2 Works only
12.31 The relevant time window concerns the period from 3 March 2019 to 18 January 2021.
13.185 My conclusions in this section are that:
(a) Sudlows have provided sufficient technical evidence to prove their allegation that Global/JMS HV duct network was defective and not fit for purpose.
(b) Global are culpable for the resulting delays resulting from their defective duct network.
13.207 My conclusion is that:
(a) Global were entitled to take the HV-B cable installation out of Sudlows' scope of works.
(b) However Global had taken responsibility for the performance of the cable and any contractual impact on the Contract Date and potential EOT to Sudlows that might flow from it.
13.229 Taking all of the above factors into consideration, my conclusions are that:
(a) The primary cause of the damage to the HV cables was Global's defective duct network.
(b) Global were ultimately responsible for the defective duct network and hence liable for any resultant delays to the Completion Date.
13.283 Global position is:
(e) Sudlows are being unreasonable in their refusal to terminate the HV cables and to energise the works.
.
13.289 My conclusions are that under the circumstances:
(a) Sudlows were correct and entitled to refuse to connect and energise the HV supply provided by Global.
(b) Global are culpable for any delays that flow from this issue.
(c) Sudlows are therefore entitled to an EOT for any delays that may occur the to Completion Date.
14.108 Window 29 (29A and 29B) (29 May 2020 to 18 January 2021)…
14.125 Adjudicator's conclusions upon EOT in this window
14.126 I have already concluded earlier in this Decision that Global are culpable for the delay events covered in this window and that Sudlows are therefore entitled to an EOT.
14.127 Both Mr Hudson and Mr Bahl agree that the delays total 234
days.
14.128 My conclusion is that Sudlows are entitled to an EOT of 234
days.
14.129 Adjudicator's conclusions on Sudlows' total EOT
entitlements.
14.130 Sudlows total EOT entitlement accumulated across Windows 14
to 29 is as follows:
(a) Windows 14 to 17 22 days
(b) Windows 18 to 21 82 days
(c) Windows 21 to 28 144 days
(d) Window 29 234 days
(e) Total EOT 482 days
14.131 My conclusions are that:
(a) Sudlows are entitled to an EOT of 482 days.
(b) With the above EOT the Completion Date for the Section 2
Works should now be revised from 14 August 2019 to 8 December 2020.
14.136 My conclusions are that Global are not entitled to withhold or deduct LAD from Sudlows for the delays to the completion of the Section 2 Works in respect of the period up to 8 December 2020."
"16.3 Sudlows seeks decision and/or declarations from the Adjudicator that:
(a) Sudlows is entitled to an additional extension of time to the Completion Date for the Section 2 Works of 509 days, or such other period as the Adjudicator shall decide, in respect of delays
between 3 March 2019 and 18 January 2021;
My Decision is that Sudlows are entitled to an additional extension of time to the Completion Date for the Section 2 Works of 482 days.
(b) the Completion Date for the Section 2 Works is thus 4 January 2021, or such other date as the Adjudicator shall decide;
My Decision is that the Completion Date for the Section 2 Works
is 8 December 2020.
(c) Global Switch is not entitled to withhold or deduct any liquidated damages in respect of Section 2 in respect of the period up to 4 January 2021, as referred to in paragraph 16.3(b) above
(alternatively in respect of the period up to such other revised Completion Date as the Adjudicator shall decide)
My Decision is that Global Switch is not entitled to withhold or deduct any liquidated damages in respect of Section 2 in respect of the period up to 8 December 2020.
and
(d) Global Switch shall pay the Adjudicator's reasonable fees and/or expenses in this Adjudication.
My decision is that:
Sudlows shall pay £4,790.27 plus VAT
and
Global shall pay £85,592.23 plus VAT…"
Adjudication 6
"5.1 Sudlows seeks decisions and/or declarations from the Adjudicator that:
5.1.1 Sudlows is entitled to additional extensions of time as follows: …
(b) 133 days in respect of Section 2 (A04 Main Fit-Out Works), or such other periods as the Adjudicator decides;…
5.1.3 Global Switch's entitlement to withhold or deduct any liquidated damages is limited
as follows: …
(b) £nil in relation to Section 2, or such other amount as the Adjudicator
Decides…"
…2. The parties are to confirm by the end of next week whether they would like me to consider alternative positions in connection with the extent to which I am bound by Mr Curtis' findings regarding Relevant Event in Window 29."
Global Switch did not provide confirmation of their position in respect of paragraph 2. However, Sudlows responded by letter dated 11 August 2022:
"Sudlows' response to the question posed in item 2 of your email dated 3 August 2022 is in line with its submissions as outlined above. Plainly, it is a matter for you but, as noted above, Sudlows recognises the difficulty faced by you in respect of this matter and appreciates that it may assist both you and the Parties if you were to consider alternative positions in respect of the issue. Accordingly, and without affording you any jurisdiction to do so, Sudlows accepts that it may assist the Parties if, in the event that you agree with Sudlows that you are bound by Mr Curtis' findings regarding Relevant Events in Window 29, you should nevertheless go on to consider the position as if you were not bound by those findings. Sudlows therefore invites you to proceed on that basis (again, however, making it clear that Sudlows makes no concessions regarding your jurisdiction to do so)."
For the avoidance of any doubt, we confirm that Sudlows does not submit to your jurisdiction to open up and re-decide what, in Sudlows' submissions, has already been decided by Mr Curtis".
"4. The dispute concerns the amounts due following Sudlows' interim application for payment No.46 ("IAP46") which included claims for additional extensions of time and additional payment. Sudlows claims that it is entitled to additional extensions of time of 211 days in respect of Section 1 (Chiller Replacement Works) and 133 days in respect of Section 2 (A04 Main Fit-Out Works). At the close of submissions, but prior to an update to its interest and financing calculations, Sudlows contends that the gross valuation of the Works is £33,294,3852 and that, after taking into account retention (£284,043), the amount previously paid (£21,747,843), a call on the Bank Guarantee (£1,018,025.00), liquidated damages (£165,700.00) and interest awarded previously (£80,114), it is entitled to further payment of £12,034,711 plus interest.
5. Global Switch denies that Sudlows is entitled to any further extension of time, and claims it is entitled to liquidated damages of £478,023 in respect of Section 1 and £1,396,286 in respect of Section 2. Global Switch's position is that the correct gross valuation of the Works is £16,429,530, and taking into account retention (£385,337), the amount previously paid (£21,747,843), liquidated damages (£1,874,309) and interest awarded previously (£80,114), Global Switch contends that Sudlows owes it £7,631,073. Thus the difference between the parties is £19,665,784."
"21. It is common ground that in Adjudication No.5 Mr Curtis decided that Sudlows was entitled to an extension of time to Section 2 as a result of delays associated with a failure to provide a network of cables which prevented energisation of the HV-B supply and that the delay continued until 18th January 2021, i.e. the end of "Window 29". Sudlows' position is that, as the effect of this event continued until after practical completion on 7th June 2021, the natural consequence and/or direct effect of Mr Curtis's decision is that it is entitled to a further extension of time of 133 days (given credit for 7 days of contract work).
22. Global Switch accepts that it is bound by Mr Curtis's decision in Adjudication No.5, but contends that it is not bound by the reasoning. Global Switch therefore says that I am unfettered by Mr Curtis's decision as to whether the events relied upon constitute a Relevant Event. Global Switch accepts that the extension of time sought by Sudlows for Section 2 is in large part based on the same or similar circumstances as for Window 29, but says that Mr Curtis's reasoning did not form an essential component of his Decision. Sudlows denies this and says that Mr Curtis's findings regarding Relevant Events are an integral and necessary part of his decision
23. Sudlows contends that Global Switch is attempting to re-argue the case which it lost in adjudication No.5, i.e. that Sudlows was responsible for the duct design and cable selection and that the cable installed by Sudlows was damaged as a result of poor workmanship on the part of Sudlows, as well as raising a new argument that, as the cable installed by Power Testing (Global Switch's alternative contractor) was successfully installed, the cable installation was satisfactory. Sudlows accepts that Global Switch now also seeks to rely on two further reports from RINA, prepared after Mr Curtis's Decision, in support of its contention that Sudlow's refusal to energise was unreasonable, but contends that it is not open for Global Switch to argue a matter which has already been determined in Sudlows' favour by Mr Curtis. Notwithstanding this, Sudlows also argues that the two further reports do not actually address the underlying issue which prevented Sudlows from energising, i.e. that Power Testing's installation was novel, untested and unverified.
24. At the meeting with the parties I confirmed that I would address the question of the extent to which I am bound by Mr Curtis's decision and set out my non-binding conclusion in my Decision. I also asked the parties whether they wished me to consider the alternative position to my conclusion, such that, in the event that it was found that my non-binding conclusion on jurisdiction was wrong, I would set out what effect that would have on my Decision. The rationale for this was that it would enable the parties and a Court to easily determine the effect on my Decision in the event my conclusion was found to be wrong by way of severance.
25. Under cover of Pinsent Masons' letter dated 11th August 2022, received in an email timed at 17:11hrs that day, Sudlows confirmed that, in the event that I decide that I am bound by Mr Curtis's reasons regarding the Relevant Events in relation to Section 2, I should also consider the position as if I was not bound, i.e. the Global Switch position. Sudlows made it clear that, in adopting this position, it was making no concessions regarding my jurisdiction to do so."
"40. The dispute which Mr Curtis decided in Adjudication No.5 required him to address the parties' arguments as to whether the delays encountered in Window 29 constituted a Relevant Event. Sudlows' position was that Global Switch's cable installation did not comply with its requirements, i.e. that it was defective, and that it was reasonable for it to refuse to terminate the HV-B cables and energise the works. Global Switch denied that its cable installation was defective and contended that Sudlows was unreasonable in refusing to terminate the cables and energise the works. In support of their positions, the parties relied upon the expert evidence of Mr Marshall of Synergy Consulting Engineers (Sudlows) and Mr Paton of HKA and Mr Evan of RINA (Global Switch). At paragraphs 13.287 and 13.288 of his Decision Mr Curtis made it clear that he preferred the evidence of Sudlows and the expert report of Mr Marshall.
At paragraph 13.289 he concluded that:-
"(a) Sudlows were correct and entitled to refuse to connect and energise the HV supply provided by Global [Switch].
(b) Global [Switch]are culpable for any delays that flow from this issue.
(c) Sudlows are therefore entitled to an EOT for any delays that may occur [to] the Completion Date."
41. It is clear that the issue of whether Sudlows was correct to refuse to connect and energise the HV-B supply formed part of the dispute which Mr Curtis was required to decide. As such, it follows that Mr Curtis's finding that Sudlows was correct and that Global Switch is culpable for any delays that flow from that issue did form an essential component of and basis for his Decision. That being the case, it follows that the parties are bound by Mr Curtis's finding and reasons in this respect. I will therefore proceed on this basis when addressing the question of Sudlows' entitlement to a further extension of time for Section 2 in respect of Window 29+ and the associated time related monetary claims. However, I will also address the alternative position for the reason set out at paragraphs 24 above."
"147. It follows that I agree with Sudlows that the only items which were preventing Practical Completion were the energisation of the HV-B cable and the subsequent commissioning and technical cleaning activities. In terms of the extent of delay, Mr Hudson identifies that no progress was made during his Window 29+ i.e. from 18th January 2021 to 7th June 2021. This is a period of 140 calendar days. Mr Hudson explains that the forecast completion date at the end of Window 29 was 25th January 2021, which indicates that the outstanding work would have taken 7 days to complete. He therefore deducts the 7 days from the 140 calendar days to account for the work required once the HV-B cable had been terminated, which results in a further delay of 133 calendar days in Window 29+. I accept and adopt Mr Hudson's analysis of the critical delay which revises the Date for Completion from 8th December 2020 to 20th April 2021.
Section 2 (Alternative position)
148. As set out above, I have reached the conclusion that the parties are bound by Mr Curtis's finding in Adjudication No.5 that the delays associated with Sudlows' refusal to facilitate the termination/connection, testing and energisation of the HV-B cable and complete the remaining work constituted a Relevant Event. However, for the reasons set out at paragraph 24, I will consider the effect on my conclusion in respect of Sudlows' claim Section 2 in the event that my conclusion on Adjudication No.5 is wrong.
149. For this exercise, it is necessary to address whether the delays complained of by Sudlows were caused by a Relevant Event and/or whether Sudlows is precluded from claiming an extension of time as a result of it causing or contributing to the delay."
"Sudlows says that Global Switch was aware that the ductwork was not fit for purpose and was not suitable for the original cable selected by Sudlows and its refusal to take responsibility for the installation and energise was entirely reasonable. Sudlows accepts that Global Switch was subsequently able to energise the cables, but says that this does not address the situation Sudlows faced at the time when Global Switch was insisting that Sudlows should energise a novel, untested and unverified installation in the absence of any further data as to the characteristics of the installation."
"166. The central issues between the parties are essentially (i) the extent to which the problems encountered by Sudlows in installing the Cabelte HV-B cables in May/June 2019 and September 2019 are attributable to either party, and (ii) whether Sudlows was justified in refusing to facilitate the installation of replacement Energya cable by Power Testing in August 2020.
167. Although Sudlows had a duty to coordinate its work with JMS's work, there is no warranty in relation to JMS's work. Similarly, although it is evident that Sudlows was aware of the development of JMS's design and its departure from the planned intent, I do not accept that this means that Sudlows can be held responsible for any defects in JMS's work. The evidence indicates that Sudlows' selection of the Cabelte cable and PMI-052 was to meet the cable duct route design. The question then arises whether the fact the cables became damaged was attributable to the unsuitability of Sudlows' cable or underlying defects in JMS's duct design/installation."
"170. The replacement cable proposed and installed by Power Testing between 5th and 9th August 2020 was an Energya copper single core cable which was smaller in diameter than the Cabelte cable installed by Sudlows, but provided the same load carrying capacities. Global Switch says that this cable was selected as it was more suited to the ducts installed due to its greater flexibility. Global Switch says that, in contrast to Sudlows, Power Testing did adopt good industry practice and did not compromise the minimum bending radius of the Energya cable. Consequently, Global Switch says that this is the main reason why the installation was successful as evidenced by the energisation of the HV-B cable following the omission of Sudlows' remaining works by way of PMI-066.
171. In support of its position Global Switch relies on two further reports prepared by RINA (referred to as the fourth and fifth RINA reports) prepared in August 2021 and shared with Sudlows on 8th September 2021. These reports confirmed that the testing undertaken demonstrated that none of the calculated forces would be expected to be hazardous to the cable and that the cable could be safely energised. Subsequently the cable was energised on 19th August 2021 with no reported problems since.
172. Sudlows says that the only reason Power Testing's installation was successful was because Global Switch relaxed its specification to allow a change of configuration (i.e. six smaller single-core cables in pairs rather than two "triplex" cables) which was entirely novel and non-compliant. Sudlows says that, as this methodology was entirely unknown to it, it was entirely reasonable to refuse to take responsibility for it and/or to agree to energise the HV-B cable. Sudlows denies that the fourth and fifth RINA reports undermine its position, and says that its refusal to energise was due to the unknown characteristics of the installation and not because the characteristics were unacceptable per se. Sudlows says that the reports were prepared with the
benefit of hindsight and fail to address the situation Sudlows faced at the time.
173. Global Switch makes the point that it was not asking Sudlows to take responsibility for the Power Testing installation/the Energya cable or to terminate or energise the cable, but merely to facilitate the termination and energise of the cable. Global Switch also makes the point that, to the extent the characteristics were "unknowable", they could have been confirmed by testing, measurement and calculations after termination/connection as has now been done by the fourth and fifth RINA reports. These points are well made.
174. In my view the most compelling evidence regarding the adequacy of the duct installation by JMS and the cable installation by Power Testing is the successful energisation of the cable on 19th August 2021 and the absence of reported problems since.
175. Although there was an issue regarding the extent to which the installation was to comply with UKPN requirements, it is evident that Sudlows was aware of the duct design developed by JMS and approved by Global Switch and selected a cable which was based on that design. Although there is some evidence of issues with the ductwork installation, the fact that the ductwork installation was not altered prior to the installation of the Energya cable indicates to me that the more probable cause of the failure of the Cabelte cable installation was either the selection of the cable itself or the method of cable installation and not the duct installation or configuration. As Sudlows bears the contractual responsibility for the selection of the cable and its installation, it follows that the instruction to remove and replace the cable does not result in a Change.
176. Turning to the question of Sudlows' refusal to facilitate the termination/connection and energisation of the HV-Cable, although I accept that the fourth and fifth RINA reports were prepared after the date when the work was omitted from Sudlows' scope of work, in conjunction with the fact that the HV-B cable was successfully energised, the reports support a finding that the ducts and the cable were fit for purpose. In such circumstances, notwithstanding that such a finding is made with the benefit of hindsight, I conclude that the refusal to facilitate the termination/connection and energisation of the HV-Cable was unreasonable. It follows that I do not accept that there has been an act of prevention on the part of Global Switch regarding the cable installation by Power Testing.
177. In conclusion, in the event that it is found that I am not bound by Mr Curtis's findings regarding the issues concerning the duct installation by JMS and cable installation by Power Testing constituting a Relevant Event, I would have concluded that Sudlows was not entitled a further extension of time in respect of Section 2. I would have also found that the revised Date for Completion would be 8th December 2020 in line with extension of time awarded in Adjudication No.5.
Conclusion
178. It follows that Sudlows is entitled to a further extension of time of 23 calendar days to 30th July 2018 in respect of Section 1 and 133 calendar days to 20th April 2021 in respect of Section 2. This also results in a revised Date for Completion for the Works overall of 20th April 2021. In the event that my conclusion that the parties are bound by Mr Curtis's finding in Adjudication No.5 that the delays associated with Sudlows' refusal to facilitate the termination/connection, testing and energisation of the HV-B cable and complete the remaining work constituted a Relevant Event is found to be wrong, then it follows that Sudlows would not be entitled to a further extension of time in respect of Section 1 and that the Date for Completion of the Works would be 8th December 2020."
THE ISSUES
THE PRIOR DECISION ISSUE
The Law
". . . that the decision of the adjudicator is binding until the dispute is ?nally determined by legal proceedings, by arbitration . . . or by agreement."
"An adjudicator must resign where the dispute is the same or substantially the same as one which has previously been referred to adjudication, and a decision has been taken in that adjudication."
"Where an adjudicator resigns in circumstances referred to in para (2), or where a dispute varies signi?cantly from the dispute referred to him in the referral notice and for that reason he is not competent to decide it, the adjudicator shall be entitled to payment of . . . [reasonable fees and expenses]"
"… once an adjudicator has decided the first dispute, that dispute cannot be referred to adjudication again because it has already been resolved. The second adjudicator must be astute to see that he or she decides nothing to override or undermine the first adjudicator's decision; jurisdictionally, a later adjudicator's decision cannot override an earlier valid adjudicator's decision. The later adjudication decision may be wholly or partly unenforceable if materially it purports to decide something which has already been effectively and validly adjudicated upon."
"20. Although a number of decisions were referred to by the parties the applicable principles are conveniently summarised by Coulson J in Ben?eld Construction Ltd v Trudson (Hatton) Ltd [2008] EWHC 2333 (TCC) at paragraph 34, adopting the summary set out by Ramsay J in HG Construction Ltd v Ashwell Homes (East Anglia) Ltd [2007] EWHC 144 (TCC) at paragraph 36.
"(a) The parties are bound by the decision of an adjudicator on a dispute or difference until it is ?nally determined by court or arbitration proceedings or by an agreement made subsequently by the parties.
(b) The parties cannot seek a further decision by an adjudicator on a dispute or difference if that dispute or difference has already been the subject of a decision by an adjudicator. (c) The extent to which a decision or a dispute is binding will depend on an analysis of the terms, scope and extent of the dispute or difference referred to adjudication and the terms, scope and extent of the decision made by the adjudicator. In order to do this the approach has to be to ask whether the dispute or difference is the same or substantially the same as the relevant dispute or difference and whether the adjudicator has decided a dispute or difference which is the same or fundamentally the same as the relevant dispute or difference.
(e – sic) The approach must involve not only the same but also substantially the same dispute or difference. This is because disputes or differences encompass a wide range of factual and legal issues. If there had to be complete identity of factual and legal issues then the ability to readjudicate what was in substance the same dispute or difference would deprive clause [9.2] of its intended purpose.
(f) Whether one dispute is substantially the same as another dispute is a question of fact and
degree."
21. The reference to "fact and degree" derives from the observations of Dyson LJ in Quiet?eld Ltd v Vascroft Construction Ltd [2006] EWCA Civ 1737; [2007] BLR 67.
"45. Paragraph 9(2) provides that an adjudicator must resign where the dispute is the same or substantially the same as one which has previously been referred to adjudication and a decision has been taken in that adjudication. It must necessarily follow that the parties may not refer a dispute to adjudication in such circumstances.
46. This is the mechanism that has been adopted to protect respondents from having to face the expense and trouble of successive adjudications on the same or substantially the same dispute. There is an analogy here, albeit an imperfect one, with the rules developed by the common law to prevent successive litigation over the same matter: see the discussion about Henderson v Henderson (1843) 3 Hare 100 abuse of process and cause of action and issue estoppel by Lord Bingham of Cornhill in Johnson v Gore Wood & Co (A Firm) [2002] 2 AC 1, 30H–31G.
47. Whether dispute A is substantially the same as dispute B is a question of fact and degree. If the contractor identi?es the same Relevant Event in successive applications for extensions of time, but gives different particulars of its expected effects, the differences may or may not be suf?cient to lead to the conclusion that the two disputes are not substantially the same. All the more so if the particulars of expected effects are the same, but the evidence by which the contractor seeks to prove them is different.
48. Where the only difference between disputes arising from the rejection of two successive applications for an extension of time is that the later application makes good shortcomings of the earlier application, an adjudicator will usually have little dif?culty in deciding that the two disputes are substantially the same."…
23. As was made clear from the recent decision of this court in Matthew Harding (t/a M J Harding Contractors) v Paice [2015] EWCA Civ 1281; [2016] BLR 85, Jackson LJ at paragraph 57:
"It is quite clear from the authorities that one does not look at the dispute or dispute referred to
the ?rst adjudicator in isolation. One must look at what the ?rst adjudicator actually decided.
Ultimately it is what the ?rst adjudicator decided which determines how much or how
little remains for consideration by the second adjudicator."
24. The terms of paragraph 9(2), the approach in the Quiet?eld case of both May LJ at paragraph 32
and Dyson LJ at paragraph 48, and that of Jackson LJ in the Harding case at paragraph 57, indicate that the starting point is the Adjudicator's view of whether one dispute is the same or substantially the same. This has often been described (see for example in the Quiet?eld case at paragraph 47) as being "a question of fact and degree"; and it is important that the court gives due respect to the Adjudicator's decision, see for example, Carillion Construction Ltd v Devonport Royal Dockyard Ltd [2005] EWCA Civ 1358, Chadwick LJ at paragraph 85."
"36. Since it is the decision of the adjudicator that is binding on the parties, not his reasoning, one must consider what is meant by "the decision of the adjudicator". In most cases the adjudicator will determine that a sum of money is due from one party to the other and the decision will therefore consist of a declaration that the particular sum is due, together with related declarations in relation to the amount of interest and questions of costs. In that type of decision, it is clear beyond doubt that the adjudicator's conclusion that A owes (and must pay) £X to B is binding until finally determined by litigation or arbitration.
37. However, suppose that the adjudicator's reason for deciding that the sum owed to B is £X is that he has decided that B was entitled to an extension of time of Y weeks with a weekly prolongation cost of £Z. In this situation, I find it difficult to see how it could be said that the amount of the extension of time to which B was found to be entitled was not also part of the decision and therefore not binding as between A and B (subject, of course, to B having the right to argue in a subsequent adjudication that he is entitled to a further extension of time on the grounds not put before the adjudicator in the first adjudication). In my judgment, in that situation an adjudicator's conclusion on the amount of the extension of time attributable to the stated events would also be binding on the parties (until finally determined otherwise).
38. Accordingly, I consider that an adjudicator's decision consists of (a) the actual award (i.e. that A is to pay £X to B) and (b) any other finding in relation to the rights of the parties that forms an essential component of or basis for that award (for example, in a decision awarding prolongation costs arising out of particular events, the amount of the extension of time to which the referring party was entitled in respect of those events)."
Analysis
"(b) The fact that different or additional evidence, be it witness, expert or documentary, over and above what was relied upon in the earlier adjudication, is deployed in the later claim to be referred to a second or later adjudication, will not usually alter what the essential dispute is or has been. The reason is that evidence alone does not generally alter what is the essential dispute between the parties. One needs to differentiate between the essential dispute and the evidence required to support or undermine one party's or the other's case of defence".
"It is notable from paragraph 68 of Global Switch that O'Farrell J's view was that the reasoning for a decision is not binding, and also from Hyder and Thameside (both of which are referred to by O Farrell J) that Edwards Stuart J and Akenhead J were of the view that, although a finding can be binding, this is restricted to a finding which forms an "essential component of" or "basis for" the decision. In determining what the adjudicator has decided, Akenhead J makes it clear that it is necessary to look at what the previous adjudicator decided and that, in doing so, this can involve looking at "the pleading" type documents. Thus the dispute which the adjudicator decided will include the parties' respective arguments in respect of an issue which fall to be addressed in order to reach their decision."
"It is clear that the issue of whether Sudlows was correct to refuse to connect and energise the HV-B supply formed part of the dispute which Mr Curtis was required to decide. As such, it follows that Mr Curtis's finding that Sudlows was correct and that Global Switch is culpable for any delays that flow from that issue did form an essential component of and basis for his Decision. That being the case, it follows that the parties are bound by Mr Curtis's finding and reasons in this respect. I will therefore proceed on this basis when addressing the question of Sudlows' entitlement to a further extension of time for Section 2 in respect of Window 29+ and the associated time related monetary claims. However, I will also address the alternative position for the reason set out at paragraphs 24 above."
Severance
CONCLUSION