Natural justice Definition

GLOSSARY

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What does Natural justice mean?

Refers to the basic fundamental principles of fair treatment.

These principles include the duty to give someone a fair hearing; the duty to ensure that the matter is decided by someone who is impartial; and the duty to allow an appeal against a decision.

View the related practice notes about Natural justice

Breach of natural justice in adjudication

Principles of natural justiceIf an adjudicator breaches the rules of natural justice during the adjudication then the decision may be a nullity if the breach is serious.There are three well-known facets to the principle of natural justice:•no one should be a judge in their own cause•a party should be informed of the allegations against it and be given an opportunity to answer those allegations•a party is entitled to have its case heard by an unbiased and impartial tribunalIn practice, a dispute concerning the first of these three facets of natural justice type is extremely unlikely to arise in a construction adjudication. If there were any sign that an adjudicator had to decide on the propriety of their own conduct, the adjudicator would most likely resign. For information on an adjudicator's resignation, see Practice Note: Resignation by the adjudicator.The courts have given guidance as to what is required for a breach of natural justice on a number of occasions. The key Court of Appeal cases are Carillion Construction v Devonport Royal...

Key issues to consider on receipt of an adjudicator’s decision—checklist

Key issues to consider on receipt of an adjudicator’s decision—checklist Produced in association with 4 Pump Court This Checklist sets out the main issues you need to consider on receiving an adjudicator’s decision. The main issues There are really three main issues that should be considered at the outset: • are there any errors in the decision that might be corrected under the slip rule? • is the result enforceable? • is the result acceptable or is a final determination needed and, if so, can this be done by Part 8 proceedings? Enforceability Issues It is important to consider whether the decision is enforceable, or whether it may be challenged. Note that there are limited grounds for challenging an adjudicator’s decision—see Practice Note: Resisting enforcement of an adjudication decision. Consideration Assistance Has the decision been delivered within the permitted time? See Practice Notes: Adjudication decision and The adjudicator's powers, directions and duties Has the adjudicator decided any matters for which the adjudicator did not have jurisdiction? See Practice Note:...

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Advice to clients—what is adjudication?

Advice to clients—what is adjudication? What is adjudication? You have asked us to provide you with a brief description of what adjudication is and how the adjudication process typically runs, in light of [[your proposal to enter into a construction contract with] [insert name of the counterparty] OR [in anticipation of adjudication proceedings between] you and [insert name of the counterparty]]. Adjudication is a procedure designed to enable parties to resolve disputes relatively quickly and inexpensively. Under the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), parties to construction contracts have the right to commence adjudication at any time. The parties refer their dispute to the adjudicator, who is an impartial decision-maker. The adjudicator is usually a construction industry professional (eg a quantity surveyor or engineer), or a lawyer with construction experience. They will consider arguments from both parties, and may also use their own initiative and experience, before making a decision on how the dispute should be resolved. The party that refers its claim to adjudication is...

Advice to clients—how to enforce an adjudicator’s decision

Advice to clients—how to enforce an adjudicator’s decision Enforcing an adjudicator’s decision We understand that, following the issue of the Adjudicator’s decision (the Decision), [insert name of the responding party] has refused to make payment of the sums the Adjudicator ordered it to pay you. You have asked us to advise on what action you may take against [insert name of the responding party], in order to compel them to comply with the Decision. Adjudicators’ decisions are legally binding—but they do not have the same status as court judgments, and so cannot be enforced in the same way. This means that, to force [insert name of the responding party] to comply with the Decision, you will need to go to court. There are different types of court procedure that may be used to enforce adjudicators’ decisions. However, the most commonly used method of enforcement, and one that is appropriate in cases like this (that is, where the successful party seeks payment of a sum of money...

Dive into our 2 Precedents related to Natural justice

If a public body (eg HMRC) fails to reach a decision within a reasonable timeframe where no specific deadline applies, could this be grounds for judicial review? At what point does the 'failure to act' occur?

If a public body (eg HMRC) fails to reach a decision within a reasonable timeframe where no specific deadline applies, could this be grounds for judicial review? At what point does the 'failure to act' occur? This Q&A considers whether grounds for judicial review could be established if a public body (such as HMRC) delays or fails to reach a decision within a reasonable timeframe where no specific deadline applies. Claims for Judicial review CPR 54.1 states that a 'claim for judicial review' means a claim to review the lawfulness of an enactment or a decision, action or failure to act in relation to the exercise of a public function. Judicial review is generally a remedy of last resort, where there is no alternative remedy (for authority in the context of Tax, see: R v Epping and Harlow General Commissioners ex parte Goldstraw). Permission to commence judicial review proceedings will not be granted if there is an adequate alternative remedy. In a Tax context, it may be beneficial...

An adjudicator has the power to ‘take the initiative in ascertaining the facts and the law’. What does this mean, and are there any limits on the power?

An adjudicator has the power to ‘take the initiative in ascertaining the facts and the law’. What does this mean, and are there any limits on the power? In terms of section 108(2)(f) of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), parties to construction contracts must provide for the adjudicator to have the power to take the initiative in ascertaining the facts and the law. If they do not, the parties’ adjudication rules are replaced with those in the Scheme for Construction Contracts (the Scheme), which does include this provision. The power to take the initiative gives the adjudicator the discretion to take a ‘proactive’ approach. This is different from the position of a judge, whose role is generally one of a ‘referee’. In Macob v Morrison the court explained that the adjudicator could, on the basis of this power, ‘conduct an entirely inquisitorial process, or…invite representations from the parties’. It said that Parliament, in drafting HGCRA 1996, envisioned that adjudications would...

See the 16 Q&As about Natural justice

Injunction restraining a party from continuing with and issuing adjudications (BECK Interiors Ltd v Eros Ltd)

Construction analysis: This case concerned an unsuccessful application by a contractor for an interim injunction restraining a developer from continuing with and issuing further adjudications. The developer commenced four adjudications in quick succession against the contractor and Part 8 proceedings in relation to a previous adjudicator’s decision, plus the developer threatened to launch a fifth adjudication. The court dismissed the application. Written by Jonathan Pawlowski, partner at Howard Kennedy LLP.

Arbitration weekly highlights—17 October 2024

This week's edition of Arbitration weekly highlights includes: coverage of arbitration-related decisions from the English courts, from India, France, Singapore and the USA and from an ICSID trbunal and updates from the CJT, ELI, JAMS, AAA and ICDR, IISD, SCCA and UNUM. Also included is news of White & Case and Queen Mary University of London (QMUL) launching the sixth edition of their international arbitration survey, closing on 11 December 2024. All this, and more in our weekly highlights.

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