Grove Developments -v- S&T was a significant payment decision from the courts in 2018. It changed the process by which purported overpayments could be recovered allowing a true valuation of interim payments flowing a smash and grab adjudication.
The anticipated appeal to the Supreme Court will not be proceeding. Permission to appeal was given by the Supreme Court earlier this year and reported in our previous article. We understand that the court proceedings have been settled and accordingly the appeal to the Supreme Court shall not proceed.
For the rest of us in the construction industry that means that the Court of Appeal judgment remains the law. Most notably, the position of the Court that payment of the smash and grab adjudication decision is a condition precedent to the commencement of the second true valuation adjudication has significant practical and commercial ramifications for paying parties.
In the recent case of M Davenport -v- Greer the TCC interpreted the law as requiring payment as a condition precedent for the true valuation of final as well as interim payments. In practical terms, this extends the application of the payment condition precedent of payment of the smash and grab sums to all payments due as notified sums in construction contacts.