Duro Felguera defeated in High Court after disputing adjudicator鈥檚 decision on civils contract row
Spanish contractor Duro Felguera has been ordered to pay John Sisk & Son at least 拢10m in a High Court ruling in a dispute over civils work on an undisclosed combined cycle power plant project.
Sisk took the matter to court to enforce the decision of an adjudicator, who had already awarded Sisk in excess of 拢10m.
The dispute was over the amount of concrete work Sisk had carried out on a civils contract, and how much this should cost under the contract. The adjudicator valued Sisk鈥檚 work on the scheme at 拢36m.
Duro Felguera UK Ltd, the Spanish group鈥檚 UK business, disputed the adjudicator鈥檚 decision on the grounds that there were 鈥渂reaches of natural justice鈥 and, in its view, the adjudicator had 鈥渨rongfully鈥 delegated some of his decision-making role.
In delivering his judgement, Mr Justice Edwards-Stuart said Duro鈥檚 challenge to the adjudicator鈥檚 decision 鈥渇ails on every ground.鈥
Duro disputed Sisk鈥檚 claim and contended that Sisk鈥檚 position was based on a misconceived interpretation of the contract.
While Duro agreed Sisk should be paid for the concrete, it could not agree on a rate with Sisk.
The judgement comes after John Sisk & Son鈥檚 involvement last year in another high-profile dispute, with luxury hotel chain Shangri-La, which related to work on the Shard skyscraper in London.
Sisk and Shangri-La reached an out of court settlement last September over their multi-million pound High Court battle, which centred on major delays to the fit-out of the Shard鈥檚 luxury hotel.
Shangri-La hit John Sisk & Son with a 拢57m High Court claim over problems on the 拢39.2m fit-out of its flagship European hotel - which ultimately opened a year late. John Sisk & Son hit back a month later with a vigorous defence and a 拢26.8m counterclaim.
At the time, it was believed the settlement was a so-called 鈥渨alk-away鈥 deal, with no money changing hands on either side.
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