Adjudication
Pro-Design Limited v New Millenium Experience Company Limited(2001)

© Daniel Atkinson 2002 08 January 2002

 

KEYWORDS:

Housing Grants Construction and Regeneration Act 1996, enforcement, fraud.

In Pro-Design Limited v New Millenium Experience Company Limited(2001) Millenium was the main contractor responsible for the creation of the Millenium Dome in Greenwich London.  Pro-Design was a lighting company appointed to construct the lighting system in the Millenium Dome.

Judge Mackay considered that Pro-Design  had an unanswerable claim under the 1996 Act following adjudication.  In the normal case there would be no possible objection to Pro-Design receiving their money.  It was held however that there was an unsurmountable objection to Pro-Design getting summary judgment.  Millenium argued that Pro-Design was a fraudulent vehicle owned, operated, managed, controlled, supervised and executed by a senior official employee, a person responsible for the works to be carried out on behalf of Millenium itself.  That employee it was said wrongfully, in breach of his contract, conspired with other persons to create a company to carry out work on the Dome and as the leading person in the lighting department of the Dome company, it was said, was in a position to see that that company got the work.

Judge Mackay stated that the supervision of Millenium and the supervision of the works at the Dome needed thorough investigation.  He held that if Millenium were correct then the court would be advancing to Pro-Design monies brought about and created by the unlawful and fraudulent conspiracy.  If Millenium were entirely wrong then Pro-Design was entitled to its money.

It was held that since Pro-Design had failed to rebut, either by implication or by cogent evidence, the initial and fundamental assertions of Millenium, that the Court had no power but to refuse the application for summary judgment.