Bewley Homes plc v CNM Estates (Surbiton) Ltd
Citation: EWHC 2619 (TCC), BLR 67
Nature of case:
In an application for summary judgment, the court held that the defendant had no arguable defence to a claim for payment brought under a settlement agreement which had been concluded between the parties after an adjudication. The court applied by analogy the principles applicable to the enforcement of a decision of an adjudicator in determining whether the agreement should be stayed on the grounds either of the alleged insolvency of Bewley or of CNM. The court held that where a stay is sought in relation to the enforcement of a settlement agreement, the parties current financial position should be compared with their financial position at the moment of entry into the settlement agreement, not the time of entry into the underlying construction contract.