Changing the law to allow insolvent construction companies to adjudicate

Bresco

Bresco Electrical Services Limited (in liquidation) v Michael J Lonsdale Electrical Limited [2020] UKSC 25

What we did

Changed the law in the UK. The Supreme Court agreed with Pythagoras’ view that a construction company has an unfettered right to use the adjudication process – even if it is in an insolvency process. The first instance court granted, and the Court of Appeal upheld, an injunction stopping Bresco from running an adjudication against Michael J Lonsdale. We challenged that on several legal grounds – and the Supreme Court unanimously granted our appeal.

The outcome

We removed a substantial roadblock for insolvent companies to recover debts owed to them. Enforcement of adjudication decisions was left open by the Supreme Court, but see Meadowside and Astec Projects.

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For more details click here.

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Jennifer Guthrie

Head of Business Development
jennifer.guthrie@pythagorascapital.com