Ekurhuleni West College v Segal and Another

Ekurhuleni West College, a public college, employed Trencon Construction (Pty) Ltd under a written building contract to construct a conference centre. Disputes arose after practical completion and were referred, in terms of the contract, to adjudication by Mr Stanley Harold Segal. The adjudicator issued a determination partially in Trencon’s favour, ordering the College to pay approximately R3.25 million. The College gave notice of dissatisfaction and referred the disputes to arbitration, but failed to pay the adjudicated amount. Instead, it brought an application in the High Court to review and set aside the adjudicator’s determination, alleging procedural unfairness and errors on the merits. The High Court dismissed the review and enforced the determination. The College appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel. The enforcement of the adjudicator’s determination in favour of Trencon was upheld, together with an attorney-and-client costs order.

The case confirms that adjudication under standard building contracts is intended as a swift, interim dispute-resolution mechanism, with arbitration as the final stage. It reinforces that courts should be slow to intervene in adjudication decisions that are subject to pending arbitration, applying the Wahlhaus principle to prevent piecemeal litigation. The judgment provides important guidance on the limited scope of judicial review in contractual adjudication.