Citex Professional Services v. Kenmore Developments

"the decision of the adjudicator shall be binding on the parties, and they shall comply with it, until the dispute is finally determined by legal proceedings, by arbitration (if the contract provides for arbitration or the parties otherwise agree to arbitration) or by agreement between the parties"

"Any dispute or difference between the parties arising from this Agreement which cannot be resolved amicably shall be and is hereby referred to adjudication. Part I of the Scheme for Construction Contracts (Scotland) Regulation 1998 shall apply to the procedures to be adopted in any adjudication ...."

"The Adjudicator found that on 12 May 1998, the pursuers had incorrectly advised the defenders that Trentham was liable for insuring the works and that such advice was in breach of Clause 2.9 of Appendix 1 of the Agreement. The Adjudicator also determined that such advice was in breach of the warranty in Clause 7.1 of Appendix 1 and was also a negligent act giving rise to an indemnity under Clause 2.6 of Appendix 1. The Adjudicator erred in his decision."

"Any incorrect information passed to the defenders on 12 May 1998, was not provided by the pursuers in the "performance of the Services" or the discharge of any obligation incumbent under the Agreement. Further, for the same reasons, the Adjudicator erred in his conclusion that the indemnity under Clause 2.6 was applicable. In the circumstances, there is no proper basis in fact and law for holding the pursuers to be liable to make reparation to the defenders in respect of breach of contract or liable to make payment under a contractual indemnity as the Adjudicator held."