Abigroup Contractors P/L v Hardesty & Hanover International LLC

The case of Abigroup Contractors P/L v Hardesty & Hanover International LLC involved the parties in a dispute over the enforceability of an expert determination in relation to contractual obligations arising from the design and construction of two opening bridges spanning the Port River at Port Adelaide. The dispute centred on the validity of expert determinations made following failed mediation proceedings, and the enforceability of the dispute resolution clause within the Consultant Services Agreement (CSA) between Abigroup and Hardesty & Hanover International LLC (HHI). The primary issue before the court was whether the dispute resolution procedure was followed correctly, whether the expert had jurisdiction to make the determination, and whether the dispute resolution clause in the contract was void for uncertainty and, if so, whether it was severable.

The court found that the dispute resolution procedure was not followed, as the mediation process had replaced the first stage of the dispute resolution provisions. Therefore, the expert did not have jurisdiction to make the determination. Furthermore, the court held that the dispute resolution clause in the contract was void for uncertainty because it did not clearly specify the method of resolution, and it was not severable from the rest of the contract. As a result, the expert determination was not enforceable.

In conclusion, the court refused the declaration sought by HHI that the expert determination was binding and that payment of the amount in the determination was due. The court held that the dispute resolution procedure was not followed, the expert did not have jurisdiction, and the dispute resolution clause in the contract was void for uncertainty and not severable.