News

News

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.


Back to News

LATEST NEWS:

About cookies on our website

Our site uses cookies to improve your experience of certain areas of the site. You may delete and block all cookies from this site, but as a result parts of the site may not work as intended. To find out more about what cookies are, which cookies we use on this website and how to delete and block cookies, please see our privacy policy page.

Click on the button below to accept the use of cookies on this website (this will prevent the dialogue box from appearing on future visits).