Shepherd Construction Limited v Mecright Limited
Thursday, 27 July 2000
Key terms: Settlement agreement- Jurisdiction
After the parties reached a settlement agreement, Mecright referred a further dispute to adjudication without mention of the settlement agreement. Mecright contended that it had entered into settlement agreement under duress. Shepherd applied for a declaration that there the Adjudicator did not have jurisdiction.
The Judge held that any dispute under the settlement agreement could not be a dispute under the original contract even if it is argued that the settlement agreement is voidable for duress. The effect of the settlement agreement was to replace the original agreement and the Adjudicator therefore had no jurisdiction as there was no dispute under the original agreement.