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Isle of Man company in dispute over adjudicator’s award

A property company backed by motor racer Jody Scheckter has warded off a High Court claim over payments in respect of an £11m scheme for the renovation of Laverstoke House, Laverstoke Park, Whitchurch, Hampshire.

Judge Richard Seymour QC has dismissed a claim by Kent-based R Durtnell & Sons, which specialises in the restoration of old properties, for summary judgment in respect of two awards by an adjudicator totalling £713,222.

The claim was made against Kaduna Ltd, an Isle of Man incorporated company, which the judge found to be controlled from Monaco and operated ultimately for the benefit of Jody Schecter.

Kaduna was the freehold owner of Laverstoke House and initially entered a £5,890,244 contract with Durtnell for work on the property. Following variations, the contract sum increased to more than £11m.

Ultimately, disputes over some aspects of the contract were referred to adjudication, in which the adjudicator held that Kaduna should pay Durtnell £1,228,313 plus VAT. Kaduna paid only £610,883, claiming that the adjudicator had exceeded his jurisdiction in reaching a decision on some of the disputes.

Dismissing Durtnell’s application for summary judgment in respect of the outstanding amounts, the judge held that the adjudicator did not have the jurisdiction to decide a question relating to an extension of time. In those circumstances, it was held that he had not been entitled to release liquidated damages that had been withheld by Kaduna.

R Durtnell & Sons Ltd v Kaduna Ltd Technology & Construction Court (Judge Richard Seymour QC) 19 March 2003.

References: PLS News 20/03/03

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