ADJUDICATION, FRAUD AND STAY OF EXECUTION

In SG South Ltd v King’s Head Cirencester LLP [2009] EWHC 2645 (TCC), [2009] All ER (D) 120 (Nov), Mr Justice Akenhead held that fraud or deceit on the part of the party seeking to enforce the decision of an adjudicator can be raised as a defence in enforcement proceedings provided that the allegation of fraud is supported by clear and unambiguous evidence and argument. On the facts of the case it was held that the defendants had failed to adduce credible evidence of fraud and that the decisions of the adjudicators were enforceable. Akenhead J also dismissed the defendants’ claim to be entitled to a stay of execution on the ground of the claimant’s weak financial position. He held that the claimant’s financial position was little different from its position at the time of entry into the contract and that any change was attributable to the defendants’ own failure to comply with the decisions of the adjudicators. It was therefore not appropriate to grant a stay.