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Do your contract terms prevent adjudicator shopping?
27 May 2011
When drafting dispute resolution terms in contracts the parties usually either nominate a particular adjudicator or name a body who should nominate one. However naming a body is not attractive because under current law, if a party does not agree with the nomination, it can withhold service of the referral documentation so that the adjudication lapses, thereby allowing that party to seek (or 'shop') for an adjudicator it does like. The TCC (Technology and Construction Court) has observed that whilst this is the current state of the law it will be perceived by many as an abuse of the contructual and statutory process. Given those comments the Courts are unlikely to allow the situation to continue for long. In the interim it is best to ensure your lawyers draft terms and conditions to avoid this occurence.
For further reading Lanes Group Plc -v- Galliford Try Infrastructure Ltd [2011] EWHC 1035 (TCC) or better still speak to one of our Business Services Team who will be happy to discuss, advise and indeed draft your terms to avoid any complications.
Andrew Petchey, Partner
