Payment Notices - Have the Courts got it wrong?

James Richardson BSc MRICS DipAdj GDL MSc FCIArb In 1996, the Housing Grants, Construction and Regeneration Act introduced statutory adjudication. The next year, the House of Lords gave its seminal judgment in Mannai v Eagle Star. 28 years later, this case remains the leading authority on the interpretation of contractual notices. Although the courts initially applied the principles from Mannai, ‘Smash and Grab’ adjudications were a catalyst for judicial innovation and the creation of novel tests for interpreting Applications for Payment and Payment Notices, including:- Applying a different standard to Payer and Payee given notices The requirements of ‘Substance, Intent and Form’ The ‘Agenda for Adjudication’ test James will look at the background to Mannai and the principles applied by the House of Lords before considering the origin of the new tests, how they are applied and whether they are compatible with the House of Lords’ authority.