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Sprunt Ltd v London Borough of Camden

25 November 2015

Citation: CILL 3124 TCC; [2012] BLR 83; (2011) 140 Con LR 111; [2012] 1 EGLR 19; [2012] 9 EG 152; [2011] All ER(D) 87 (Dec)

Nature of case: Building consultant Sprunt entered into a framework agreement with Camden LBC by which it provided consultancy services as architect. The dispute resolution provisions of the agreement enabled either party to refer disputes to arbitration, but identified Camden as the adjudicator nominating body. Sprunt referred a dispute instead to the RICS and Camden sought to resist enforcement of the decision on two grounds: absence of a contract in writing for (the old) s.107 purposes and absence of entitlement of Sprunt to refer a dispute to RICS. The court found in favour of Sprunt on both grounds. Sprunt’s letter with an amended (reduced) fee proposal accepted by Camden expressly incorporated the terms of the framework agreement and was therefore an agreement in writing. The provision for a party to be the adjudicator-nominating body offended against s.108 and against policy. The Scheme would therefore apply, under which a reference to RICS was an appropriate nomination.