FG Skerritt Ltd v Caledonian Building Systems Ltd
Citation: EWHC 1898 (TCC)
Nature of case:
FG Skerritt applied for summary judgment to enforce an adjudicator’s decision in its favour against Caledonian Building Systems (“CBS”). FG Skerritt had been engaged as a sub-contractor on a construction project, but had gone into administrative receivership without completing the works. CBS argued that enforcement of the adjudicator’s decision should be stayed, pending the determination of its own claims against FG Skerritt arising out of the latter’s failure to complete the works, and in particular that the Insolvency Rules 1986 r.4.90 should apply.
Granting FG Skerritt’s application, Ramsey J held that, in circumstances where FG Skerritt had gone into receivership but not yet gone into liquidation, it would be inappropriate to apply a right of set-off under r4.90 where that right had not yet arisen. However, a stay of execution or guarantee should also be ordered, to protect CBS’s interest in the event of it later being entitled to deduct money from the adjudicator’s award.