Enforcing adjudication decisions in construction disputes

Temple Legal ProtectionSpecialist legal expenses insurer Temple Legal Protection has developed new ATE/litigation insurance cover specifically designed to assist insolvent referring parties seeking adjudication on a construction dispute and the subsequent enforcement of any adjudicator’s award.

The interlinked insurance policies provide indemnities for the adjudicator’s fees, adverse costs, the insured’s disbursements relating to any enforcement proceedings and the final determination proceedings.

Two cases that Temple insured last year – Balfour Beatty Civil Engineering Ltd v Astec Projects Limited (In Liquidation) [2020] 796 (TCC) and Styles Wood Ltd v GE CIF Trustees [2020] EWHC 2694 (TCC) – were the subject of detailed scrutiny by the opponents’ counsel and two High Court judges. The policies were found to be fit for purpose in providing security for the opponent’s costs and integral in securing a successful outcome for the insured.

In another case Temple insured earlier this year, the policyholder was successful in obtaining payment of an adjudicator’s award. This was, literally, at the door of the court where the hearing of the application for summary judgment was due to take place.

Commenting on what undoubtedly will be of interest to construction lawyers and insolvency practitioners, Nicholas Ellor (a Senior Underwriter at Temple Legal Protection) said “We’re confident this is a unique product in the market; one that has been tested at the sharp end of a dispute and found to be ‘combat-ready’. As a result, we are now receiving numerous enquiries from insolvency practitioners and solicitors acting for them.”

Solicitors acting for the insured in Styles & Wood v GE CIF Trustees expressed their deep gratitude. This was for Temple’s speed of response, professionalism and flexibility in addressing concerns as to specific clauses in the insurance policies; in addition, Temple personally attending the hearing of the summary judgment application.

Temple’s accommodating approach to the case and subject matter led Neil Armstrong (the partner at Myersons acting for Styles & Wood Ltd) to say, “Temple’s involvement was crucial in securing a highly successful outcome for our client.”

To find out more about this cover and how Temple Legal Protection’s legal expenses insurance products can help to support and develop your business, please contact Matthew Pascall on 01483 514428 or by email to matthew.pascall@temple-legal.co.uk


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