Success Fee Adjudication
Categories: Commercial, Contractual, Planning & Programming
The Case
Our Client was a Regional Contractor who had entered an agreement with a Specialist Electrical Supply Contractor.
Part of this agreement was a bespoke agreement relating to a “bonus” scheme regarding the number of electrical supplies on a large multiple developer site provided to individual properties. The agreement was that our Client would receive £1,000.00 for each individual property connected to the Specialist supply.
Once the majority of the work was completed, our Client wrote to the Specialist enquiring how many properties had been connected.
The Challenge
The Specialist attempted to renege on the “bonus” agreement and, as our Client had paid the Specialist for all the physical work it had carried out, our Client had no option but to pursue the Specialist via a formal action.
As the agreement was bespoke and highly complex, our Client was concerned about the potential cost of the action and its prospect of success.
The Solution
After reviewing the case, Ramskill Martin agreed to commence the Adjudication at a reduced fixed fee (of £5,000.00) plus 15% of all sums recovered.
Once commenced, the Specialist appointed a firm of Solicitors to assist in defending its position. The arguments raised were highly technical and needed careful consideration.
The Success
Eventually, following a favourable Decision, our Client recovered over £100,000.00 and Ramskill Martin was paid £18,000.00 in fees.
Our Client was extremely happy with the result as it had effectively “written off” this money due to the complexity of the case.
This was a highly unusual case as the main point of issue was not a typical construction dispute. However, Ramskill Martin’s team was able to present a compelling case and also argue the complex arguments regarding firstly jurisdiction and then contract interpretation.