CASE STUDY
Representing CSK in adjudication and enforcement proceedings (CSK Electrical Contractors Ltd v Kingwood Electrical Services Ltd [2015] EWHC 667 (TCC) 11th March 2015) for non-payment for Electrical work carried out at Twickenham Rugby Stadium prior to the Rugby World Cup in 2015 from subcontractor Kingwood.
CSK were not paid deliberately. Kingwood had no defence and also failed to serve any Payment or Payless Notices on the two contracts they engaged CSK on. Arbicon ran two adjudications simultaneously on the argument of Default Payment Notices were served and due. The adjudicator agreed and awarded the whole claim against Kingwood, who it is known received a downstream 7 digit payment for the electrical works from the main contractor Shepherd. CSK were forced to enforce the Adjudicator's awards and were awarded £413,876.92 by the TCC (High Court) including all costs and interest. Kingwood then declared bankruptcy and never paid, which caused the eventual insolvency of CSK, who suffered terribly from this case. For all those who went to the last Rugby World Cup at Twickenham and forevermore spare a thought for the people who put the electrics who were not paid. The case attracted interest from the legal world too on the use of blacklists in adjudication following a case called Eurocom. It was not conclusive, but illustrated that the blacklist would be treated differently by the Court, if put differently to the Nominating Body. That is as a preference that the blacklist be taken into account rather than a fraudulent declaration to a question about exclusions on conflicts of interest.
£413,876.92
"I couldn't have asked more from Arbicon they helped me out from the start and did a brilliant job giving a very personal and hands-on service. The legal battle continues for justice against those involved. I would always recommend Arbicon to anyone who are seeking to obtain payment through the legal channels, a solicitor couldn't have done what they did."
- CSK Electrical Contractors Ltd
Arbicon Comment
"Arbicon assisted in winning every penny claimed together with interest and indemnity costs due to CSK. Despite the High Court Judgement, Kingwood escaped by declaring bankruptcy causing the eventual demise of CSK as a result. This case is a perfect example of how bankruptcy is used to stop and retain monies travelling downstream in the contractual foodchain. I am leading a crusade against this kind of practice, which due to useless and inept insolvency laws and procedures, unscrupulous firms have a mandate to take of goods and services without paying for them, which is wrong. There are numerous examples like this in our case study book over the years..."