Summary

The case concerned the non-payment by a tenant of a commercial service charge. In considering the tenant’s permitted contractual defences of “manifest or mathematical error or fraud”, the Supreme Court construed the meaning of “manifest error” narrowly.

Learning points

• Contracts which reference, or schemes for, expert determination generally include a clause which enables the parties to appeal the expert determination on the basis that it contains a “manifest error”. The EWI’s expert determination scheme which is to be launched later in the yeat, for example, includes such a clause.

• The Supreme Court has construed the term “manifest error” narrowly. An arguable error will not suffice, however well founded the allegation of error may ultimately prove to be.

• Before accepting instruction as an expert determiner, make sure you fully understand the terms under which you would be making the expert determination, including the permitted grounds for appeal.

To continue reading you must be an EWI member, become a member and access exclusive content. 

Already a member? Login