Success for Richard Sage in TCC adjudication enforcement hearing

Richard Sage appeared for the Claimant in Welsh Heritage Construction Ltd v Kavanagh. The Claimant had succeeded in a recent adjudication but the Defendants had refused to pay. Ramsey J gave summary judgment for the Claimant and dismissed the Defendants’ application for a stay of execution.

The Defendants sought a stay of execution on the ground that the Claimant’s financial health made it unlikely it would repay the judgment sum in any subsequent arbitration.  Ramsey J rejected the Defendants’ application.  Applying the principles set out in Wimbledon Construction Co 2000 Ltd v Vago [2005] EWHC 1086 (TCC), [2005] BLR 374, the court held that the Defendants had not proved that the Claimant would be unable to repay the judgment sum.  In addition, Ramsey J held that analysis of the Claimant’s balance sheet and management accounts demonstrated that the Claimant’s financial health had not deteriorated since the parties entered the contract.  The Defendants relied on a Dun & Bradstreet report to demonstrate that the Claimant was a credit risk.  Ramsey J observed that in the construction industry, Dun & Bradstreet reports were not optimistic about the liquidity of many construction companies, which in fact managed to remain solvent.

Richard Sage was instructed by Silver Shemmings LLP.

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