Jim Ennis Construction Limited v Combined Stabilisation Limited
Citation: EWHC B37 (TCC)
Nature of case:
Jim Ennis Construction Ltd (“JEC”), brought Part 8 proceedings for declaratory relief against Combined Stabilisation Ltd (“CSL”) in relation to a final account agreement allegedly made between the parties on 28th July 2009.
The Part 8 proceedings were brought during the course of an adjudication commenced by CSL by which CSL sought to open up and revise the final account.
The TCC (Ramsey J) held that the matter was suitable for Part 8 notwithstanding factual disputes between the parties over the final account negotiations. In his judgment, HHJ Raynor QC, sitting in the Manchester TCC, held that a final account agreement did exist and that CSL consequently remained bound by it, with the result that JEC was entitled to the declaratory relief claimed .
Importantly, HHJ Raynor QC further held that the existence of a compromise agreement will afford a jurisdictional defence (as opposed to a mere substantive defence) in adjudication.