
Rob Kelly	Tony Dolbear	Jessica Lee

Adjudication is a popular method of dealing with disputes in the construction industry, often being both quicker and cheaper than litigation or arbitration. Adjudicator's decisions are increasingly commonly challenged on the grounds of the claimant's inability to repay sums awarded if the adjudicator's decision is reversed in later litigation.

Such challenges can be successful, particularly if the claimant is in liquidation or administration but in the case of Mead General Building Limited v Dartmoor Properties Limited the court held that where a company has entered into a company voluntary arrangement – a procedure in which a distressed company can enter into a binding agreement with its creditors and continue to trade - this will not automatically lead the court to infer that the claimant would be unable to repay any sums paid in accordance with the adjudicator's award.

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