Quartzelec Ltd v Honeywell Control Systems Ltd [electronic resource]

[2008] EWHC 3315 (TCC), 5 December 2008. The case considers whether an adjudicator should examine a defence offered by a party after adjudication proceedings commenced. Honeywell (H) subcontracted with Quartzelec (Q) to carry out works on a construction project. Q eventually sought adjudication against Honeywell for an increased valuation of works due to a changed scope of works and for prolongation costs. Honeywell mentioned for the first time for its defence omissions which it failed to value properly for interim payment, and which would reduce the sums due to Q. Q argued that the adjudicator had no jurisdiction to examine this matter as H did not present a withholding notice. The adjudicator refused to consider the defence, as it was not presented before the start of the adjudication proceedings. H argued that this refusal to consider its defence was a jurisdictional error and a breach of natural justice. The matter came to the court. "Held": Where a dispute involves money, the adjudicator should examine the defence, even if it is presented after the adjudication started. The adjudicator has jurisdiction. There was no need to issue a withholding notice reflecting omissions for the works. The judge refused to enforce the adjudicator's decision.