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Settlement binding until court says not

By: Series: Contract Journal ; 407(6310) 17 January 2001, 21(1)Publication details: 2001Subject(s): Summary: Considers settlement agreements in the light of "Sheppherd Construction v Mecright" (2000) when it was ruled that, following a settlement, no dispute can be referred to adjudication under the Housing Grants, Construction and Regeneration Act 1996 s108. In such circumstances the proper course of action would be to establish that the settlement was entered into under economic duress, but both parties must abide by the terms of the agreement until is overturned by a court or arbitrator.

Considers settlement agreements in the light of "Sheppherd Construction v Mecright" (2000) when it was ruled that, following a settlement, no dispute can be referred to adjudication under the Housing Grants, Construction and Regeneration Act 1996 s108. In such circumstances the proper course of action would be to establish that the settlement was entered into under economic duress, but both parties must abide by the terms of the agreement until is overturned by a court or arbitrator.