A recent Court of Appeal decision - PC Harrington Contractors Ltd v Systech International Ltd [2012] EWCA Civ 1371 - has clarified the position on payment of an adjudicator's fees where the adjudicator fails to produce an enforceable decision.

The adjudicator is not entitled to be paid anything, unless the parties have agreed terms with the adjudicator that provide that the adjudicator will be paid even if no decision is delivered or,alternatively if a decision is delivered but it is unenforceable.

So the moral is:

  • if you are an adjudicator make sure you deliver an enforceable decision.
  • if you are a party to an adjudication make sure that the terms of appointment of the adjudicator provide that payment is only made to the adjudicator if he provides an enforceable decision.