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SECURITY OF ADJUDICATOR'S FEES
A matter of interest to all adjudicators is whether they will be paid for their work.
In Dr P Rankilor and M Igoe Ltd -v- Perco Engineering Services Ltd, in the Salford District Registry, part of which was the payment of the adjudicator's (Dr Rankilor) fee, HH Judge Gilliland referred to a contention that, even if the Decision had been vitiated by a breach of the rules of natural justice, the adjudicator would still have been entitled to recover his fee. He found it a surprising submission that, if the decision had been reached in serious breach of the rules of natural justice and thus would not be enforced by the court, that the adjudicator should nevertheless be entitled to claim payment for producing what was in fact a worthless decision without even any temporary binding legal effect. However, as he had found that no breach of natural justice had occurred, he then left that question for determination in a case where it is necessary to do so.
I have to admit that I have always held to that view. The adjudicator's appointment is a matter of contract. Why should he be entitled to payment for a complete failure of consideration. Further, should an adjudicator be reimbursed for fees incurred in producing a Decision which showed that his proper course of action was not to proceed (eg that the dispute was substantially the same As One which had previously been decided). Can he really rely on having acted in good faith?
I would be very interested in comments from members.
Peter Horne