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Last August we reported on the case of Lonsdale v Bresco and the Court of Appeal decision where it was held that a company in liquidation could not refer a dispute to adjudication where there were claims by a company in liquidation and cross claims by the other party. Today the Supreme Court has overturned that decision and has held that liquidators can adjudicate where there are cross claims. There may still be an issue on enforcement (although it might be possible for any such issue to be overcome), but that does not deprive a liquidator of the right to adjudicate. Not only does this decision potentially have far reaching implications in itself, but when combined with the changes proposed by the Insolvency bill referred to in Lino di Lorenzo's blog on the Corporate Rescue and Insolvency bill, the landscape of insolvency in the construction industry is changing fast. Watch this space.
Senior Legal Adviser
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