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Issues involved: Dispute over labour escalation charges, Accord and satisfaction, Arbitrable dispute determination.
Labour Escalation Dispute: The respondent entered into a construction agreement, leading to a dispute over labour escalation charges. A sub committee report outlined conditions for settlement, including the contractor's acceptance of the offered amount as full and final settlement. The respondent agreed to this in writing, received the payment, and withdrew the claim, indicating accord and satisfaction. The court held there was no arbitrable dispute regarding labour escalation charges. Accord and Satisfaction: The appellant initially accepted the settlement amount for labour escalation charges but later disputed the calculation method. The court ruled that once the respondent accepted the amount and withdrew the claim, there was accord and satisfaction, precluding any further dispute on the matter. The court found no grounds for the respondent to challenge the settled claim before an arbitrator. Arbitrable Dispute Determination: The court addressed the appellant's argument that the respondent's acceptance only related to labour escalation, not other claims. It was clarified that the court would assess if arbitrable disputes existed under the contract for reference to arbitration, specifically regarding the respondent's entitlement to any claimed amounts. The appeal was partially allowed, with each party bearing their own costs.
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