ABBEY HEALTHCARE (MILL HILL) LTD v AUGUSTA 2008 LLP (FORMERLY SIMPLY CONSTRUCT (UK) LLP)

[2024] UKSC 23, Supreme Court, Lord Briggs, Lord Hamblen, Lady Rose, Lord Richards and Lady Simler, 9 July 2024

Collateral warranty – Whether a construction contract – Section 104(1) Housing Grants, Construction and Regeneration Act 1996

The claimant sought to enforce the decision of an adjudicator but the defendant resisted enforcement on the ground that the collateral warranty, on the basis of which the claim was brought, was not a construction contract as defined in section 104(1) of the Housing Grants, Construction and Regeneration Act 1996 ("the 1996 Act"), with the consequence that the adjudicator lacked jurisdiction to decide the dispute which had been referred to him. At first instance it was held that the collateral warranty was not a construction contract so that the adjudicator did lack jurisdiction. The claimant appealed to the Court of Appeal and, by a majority, that appeal was allowed. On the defendant's further appeal to the Supreme Court, in a judgment given by Lord Hamblen, it was held that the collateral warranty was not a construction contract within the meaning of the 1996 Act so that the adjudicator did not have jurisdiction to reach the decision which he had reached and his decision was therefore not enforceable.