The Morganstone Ltd v Birkemp Ltd case represents a significant Technology and Construction Court judgment that clarifies critical aspects of construction adjudication, payment schedules, and natural justice requirements. The judgment was delivered by the TCC in 2024, addressing the enforceability of adjudication decisions where material defences have been improperly excluded. The case provides essential guidance on the continuation of payment rights after agreed schedules expire and the scope of adjudicators' jurisdiction in considering cross-claims.

Case Background: The dispute arose from a construction project where Birkemp submitted an interim payment application in August 2023, after an agreed payment schedule had expired in March 2023. Morganstone challenged both the contractual right to make such applications and sought to raise significant cross-claims in the adjudication. The adjudicator awarded Birkemp £207,076 but took a restrictive view of jurisdiction, excluding Morganstone's cross-claims. While Morganstone initially lost a Part 8 challenge to contractual entitlement, Birkemp's subsequent enforcement action failed due to natural justice concerns.

Key Legal Points: This judgment establishes that payment rights continue under original contract terms when agreed schedules expire without replacement, confirms that adjudicators must consider material defences and cross-claims that could significantly affect the result, and clarifies the natural justice requirements for enforceable adjudication decisions. The court's analysis provides important guidance on the proper scope of adjudication jurisdiction and strategic considerations for dispute framing in construction payment disputes.