Is insolvency a bar to an adjudicator’s jurisdiction?

A recent decision in Michael J Lonsdale (Electrical) Limited v Bresco Electrical Services Limited (In Liquidation) [2018] (TCC) has held that a company in liquidation cannot refer a dispute to adjudication when that dispute includes (whether in whole or in part) determination of any claim for further sums said to be due to the referring party from the responding party.

The courts are increasingly intervening in ongoing adjudications and even extinguishing claims sought to be relied on in that adjudication. This case also illustrates the importance of raising jurisdictional arguments from the outset and not once a decision has been issued or enforcement is being sought.

Nathan Modell and Nikki Baynes discuss this case further in our article here.