Insolvent Companies and Adjudication: Bresco Services Limited v Michael J Lonsdale [2020] UKSC 25 – Hardwicke Chambers

‘Adjudication is a quick and comparatively cheap method of dispute resolution and for those reasons is attractive to insolvent companies seeking to recover debts. However, a respondent was likely to be able to restrain the insolvent company from referring the matter to adjudication on the basis that it would be futile to do so, since any positive decision was unlikely to be enforced as a result of the very fact of the company’s insolvency. Therefore, any award lacked practical utility. Following the decision of the Supreme Court in Bresco v Lonsdale, that is no longer the case.’

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Hardwicke Chambers, 17th June 2020

Source: hardwicke.co.uk

The Supreme Court sanctions the use of adjudication in the insolvency context: Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25 – 3 Hare Court

‘The Supreme Court has given judgment in what is being hailed as a landmark case in the construction and insolvency spheres. The decision has not only eliminated any doubt that there is jurisdiction for an insolvent company to adjudicate against a respondent with a potential cross-claim, but it has also endorsed the use of adjudication as a helpful tool for liquidators.’

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3 Hare Court, 22nd June 2020

Source: www.3harecourt.com

Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] USC 25, or ‘‘kicking the door wide open’’ – 3PB

‘Lord Justice Coulson’s judgment included the proposition that an insolvent Company could only adjudicate a dispute with a creditor in circumstances of mutual debts in “exceptional circumstances”. Subsequent caselaw has explored the extent of these “exceptional circumstances”.’

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3PB, 18th June 2020

Source: www.3pb.co.uk

South Shields Football Club 1888 Limited v The Football Association Limited – Blackstone Chambers

‘A legal challenge to The FA’s decision to end the 2019/20 football season in Steps 3-7 of the English football National League System without promotion or relegation on account of the COVID-19 pandemic has been dismissed. The arbitral panel, chaired by Lord Dyson with Charles Flint QC and Andrew Green QC, rejected the challenge brought by South Shields FC, a club sitting in an automatic promotion position at the point of cessation of the season.’

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Blackstone Chambers, 11th June 2020

Source: www.blackstonechambers.com

The price of an unreasonable refusal to engage: ADR, Litigation and cost consequences – 3PB

‘The touchstone of all ADR procedures is that parties enter into them voluntarily. However, there is an increasing body of case law in the English courts that suggests mediation should be seriously considered:

a. before litigation is entered into. Failure to do so may result in adverse or impacted
costs for a client, even if successful; and

b. in the course of litigation (instigated by the parties and increasingly with court
directions) an unreasonable refusal of a request to mediate may have bearing on
Part 36 offers and costs.

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3PB, 8th June 2020

Source: www.3pb.co.uk

New claims in High Court bounce back above 2019 level – Litigation Futures

Posted June 15th, 2020 in coronavirus, courts, dispute resolution, news, statistics by sally

‘High Court activity has already recovered to pre-Covid-19 levels following a sharp slump during the height of the outbreak, new research has found.’

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Litigation Futures, 15th June 2020

Source: www.litigationfutures.com

Mediation – Don’t panic in the Pandemic – be prepared – 4-5 Gray’s Inn Square

‘The coronavirus pandemic and the current and continuing lockdown imposed by government has led to a number of consequences for the resolution of commercial disputes, and the administration of justice. First is where trials are being adjourned to uncertain dates, currently unable to take place due to the inability or unwillingness of people to attend court. Second is what is going to happen when the lockdown is eased or lifted, and disputes, which have been building up in the normal course, enter the system creating a backlog. Judges are understandably concerned that the courts and arbitral tribunals could face and potentially be overwhelmed by a wave of commercial cases. A number of these disputes will have arisen due to the parties’ inability to honour their contractual obligations due to the lockdown with complicated issues of law as to the remedies available.’

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4-5 Gray's Inn Square, 8th June 2020

Source: www.4-5.co.uk

Judicial early neutral evaluation during coronavirus, friend or foe? – No. 5 Chambers

‘Courts across the jurisdiction have struggled for years to run small claim and fast track lists efficiently in order to reduce the backlog. Coronavirus lockdown has brought this to a head, as cases are adjourned and the huge backlog is set to rise. Waiting several months, if not years, to have a case of modest value heard is contrary to the interests of justice. Memories fade, individuals cannot enforce their rights until the issue is litigated, the deserving go uncompensated, and the pressure to under-settle increases.’

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No. 5 Chambers, 1st June 2020

Source: www.no5.com

NHS Resolution expands mediation panel – Litigation Futures

‘NHS Resolution has added one provider to its mediation panel following what it said was a “highly competitive retender” process that saw the existing three reappointed.’

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Litigation Futures, 9th June 2020

Source: www.litigationfutures.com

Spending watchdog warns public bodies on challenge of managing end of PFI contracts as disputes loom – Local Government Lawyer

‘More than a third of public bodies expect to have formal disputes as PFI contracts come to an end, the National Audit Office has found.’

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Local Government Lawyer, 5th June 2020

Source: www.localgovernmentlawyer.co.uk

Top judges call for ADR “acceleration” in face of Covid-19 – Litigation Futures

Posted June 5th, 2020 in contracts, coronavirus, dispute resolution, judges, news by sally

A group of senior former judges and legal academics has called for an acceleration in the take-up of alternative dispute resolution (ADR) in the face of commercial contract disputes arising from Covid-19.

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Litigation Futures, 4th June 2020

Source: www.litigationfutures.com

High Court rules employer had to pay settlement even after ex-employee breached confidentiality clause – Duchy Farm Kennels Ltd v Steels [2020] EWHC 1208 (QB) – 3PB

Posted June 4th, 2020 in confidentiality, dispute resolution, employment tribunals, news by sally

‘In Duchy Farm Kennels Ltd v Steels [2020] EWHC 1208 (QB), the High Court addressed the consequences of a party breaching the confidentiality clause in a COT3 settlement, noting that the issue of law arising regarding the status of the clause had not been the subject of a previous appellate ruling.’

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3PB, 2nd June 2020

Source: www.3pb.co.uk

Mediation: don’t panic in the pandemic, be prepared – Counsel

‘Might fear of the courts being overwhelmed by an anticipated flood of cases, after eventual emergence from lockdown, begin a trend amongst the judiciary to be more proactive in its encouragement of mediation? Colin Manning investigates.’

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Counsel, June 2020

Source: www.counselmagazine.co.uk

The increased benefits of ADR in the Covid-19 world – KCH Garden Sq

Posted June 2nd, 2020 in chambers articles, coronavirus, dispute resolution, news by sally

‘With many people working by remote means, combined with the reduction in court sitting days, clients are increasingly looking to Alternative Dispute Resolution (ADR) processes. Tom Russell discusses the benefits of ADR in more depth. The full article is available to read here.’

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KCH Garden Sq, 22nd May 2020

Source: kchgardensquare.co.uk

TCC decides adjudicator did not stray off course – Practical Law Construction Blog

‘This was a case about the enforcement of an adjudicator’s decision (as so many are) and involved many of the usual arguments (as so many do), such as did the adjudicator have jurisdiction to reach the decision and was there a breach of the rules of natural justice? Unusually, the judge also had to consider an application to serve proceedings out of the jurisdiction, something I’m not really familiar with but, luckily, Helena White has already talked about that in her blog. That means I don’t need to mention whether enforcement proceedings should have been started in England or Northern Ireland, and leaves me to look at the jurisdiction and natural justice issues in more detail.’

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Practical Law Construction Blog, 13th May 2020

Source: constructionblog.practicallaw.com

Successful defendant penalised in costs for ADR failure – Litigation Futures

Posted May 15th, 2020 in costs, dispute resolution, indemnities, news by sally

‘The High Court has penalised a successful party for refusing to engage in alternative dispute resolution (ADR), saying it had brought the litigation on itself as a result.’

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Litigation Futures, 14th May 2020

Source: www.litigationfutures.com

Disciplinary and Grievance Procedures During the Coronavirus Pandemic: Guidance from ACAS – Coronavirus Guidance for Lawyers and Businesses

‘ACAS has produced guidance on Disciplinary and grievance procedures during the coronavirus pandemic.’

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Coronavirus: Guidance for Lawyers and Businesses, 6th May 2020

Source: lawinthetimeofcorona.wordpress.com

Meadowside exceptions applied in Balfour Beatty Civil Engineering Limited, Balfour Beatty Group Limited v Astec Projects Limited (In Liquidation) [2020] EWHC 796 (TCC) – Hardwicke Chambers

Posted May 12th, 2020 in chambers articles, construction industry, dispute resolution, news by sally

‘Balfour Beatty brought an application seeking the injunction of three adjudications that was sought by Astec. Astec engaged in three sub-contracts with Balfour Beatty, the main contractor, for various aspects of work to and around Blackfriars Station. The works began in 2010, but in April 2014 Astec went into administration and then liquidation in October 2014. Nothing happened after liquidation, until Astec sent a claim letter on 24th December 2019 and a first notice of adjudication on 24th January 2020.’

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Hardwicke Chambers, 4th May 2020

Source: hardwicke.co.uk

Have you just unreasonably refused to mediate? – 33 Bedford Row

Posted May 11th, 2020 in chambers articles, dispute resolution, news by sally

‘If a party is a signatory to a pre-existing dispute clause, that will normally be binding upon them save for specific circumstances outside the scope of this article. Our present focus is where disputants are not bound to mediate, but one side proposes mediation.’

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33 Bedford Row, 30th April 2020

Source: www.33bedfordrow.co.uk

Interactive remote ADR: the flexible route around the ongoing court logjam – Hardwicke Chambers

‘It’s a welcome development, recently announced in the Law Gazette, that ABI members and various claimant firms have already signed up to an ongoing protocol adding flexibility to the way claims are handled at this time. A similar agreement has been made between the Association of Personal Injury Lawyers and Forum of Insurance Lawyers.’

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Hardwicke Chambers, 29th April 2020

Source: hardwicke.co.uk