Altys Multi-Services Pty Ltd v Grandview Modular Building Systems P/L

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SUPREME COURT OF QUEENSLAND

CITATION:

Altys Multi-Services Pty Ltd v Grandview Modular Building Systems P/L [2008] QSC 26

PARTIES:

ALTYS MULTI-SERVICES PTY LTD ACN 097 363 470
(applicant)
v
GRANDVIEW MODULAR BUILDING SYSTEMS PTY LTD ACN 124 190 659
(first respondent)
JOHN L O’BRIEN
(second respondent)
ADJUDICATE TODAY PTY LTD ABN 39 109 605 021
(third respondent)

FILE NO:

7324 of 2007

DIVISION:

Trial Division

PROCEEDING:

Civil proceeding

DELIVERED ON:

21 February 2008

DELIVERED AT:

Brisbane

HEARING DATE:

15 February 2008

JUDGE:

Acting Justice Skoien

ORDER:

Application dismissed

CATCHWORDS:

JUDICIAL REVIEW OF ADJUDICATION UNDER BUILDING AND CONSTRUCTION INDUSTRY PAYMENTS ACT 2004;  DISADVANTAGES IN REVIEW PROCEDURE;  PREFERABILITY OF CURIAL LITIGATION

Building and Construction Industry Payments Act 2004,
ss 10, 17, 18, 100
Queensland Building Services Authority Act 1991, s. 42
Judicial Review Act 1991, ss 10, 13

Intero Hospitality Projects Pty Ltd v Empire Interior Pty Ltd
[2007) QSC 220
Roadtek, Department of Main Roads v Davenport & Ors [2006] QSC 47
Shell Refining (Australia) Pty Ltd v  AJ Mayr Engineering [2006] NSWSC 94 at para [27]
Lucas Stuart Pty Ltd v Council of the City of Sydney [2005] NSWSC 840 at para [13].
Brodyn Pty Ltd v Davenport [2003] NSWSC 1019
Minimax Fire Fighting Systems Pty Ltd v Bremore Engineering (WA) Pty Ltd [2007] QSC 333

COUNSEL:

Mr DJS Jackson QC with him Mr M Ambrose for applicant
Mr S Doyle SC with him Mr MK Stunden for first respondent

SOLICITORS:

Phillips Fox for applicant
Ebsworth & Ebsworth for first respondent

  1. : ACTING JUSTICE SKOIENThis is an application by Altys under s 20 of the Judicial Review Act 1991 to review the adjudication of Mr O’Brien (“the adjudicator”) made under the provisions of the Building and Construction Industry Payments Act 2004 (“the Payments Act”) that Altys pay to Grandview a sum of money, being a progress payment under a building contract with interest and the adjudicator’s fees.

Grounds

  1. Altys argues that:

(a)         the adjudicator did not have jurisdiction to reach that adjudication;
(b)         parts of the adjudication were not authorised by the Payments Act;
(c)         the adjudication involved errors of law;
(d)        there was no evidence or other material to justify making the adjudication.

Background

  1. Altys had been awarded a contract to construct a mining village in Dysart,


    Central Queensland

    .  Grandview is a company which specialises in the design, manufacture and supply of construction materials, specifically pre-fabricated, plastic wrapped “flat pack” style modular accommodation systems and successfully contracted with Altys for the supply of modular accommodation units to Dysart.  The adjudicated sum is a progress payment under that contract.  It consisted of alleged variations of the contract.

Legislation

  1. The long title of the Payments Act describes it as an Act to imply terms in construction contracts and to provide for adjudication of payment disputes in such contracts.  Its relevant object (s 7(a)) is to ensure that a person is entitled to receive, and is able to recover, progress payments if the person undertakes to carry out construction…

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Details
Case
[2008] QSC 26
Decision Date

CaseChat Overview and Summary

The matter between Altys Multi-Services Pty Ltd and Grandview Modular Building Systems P/L was heard in the Supreme Court of Queensland. Altys Multi-Services initiated proceedings against Grandview Modular Building Systems seeking a declaration that the adjudication process was unfair and that the adjudicator's decision was void. The dispute arose from a payment claim made under a construction contract, where Altys sought payment of $45,000. Grandview Modular Building Systems disputed the claim, leading to an adjudication under the Building and Construction Industry Payments Act 2004. The adjudicator ruled in favour of Altys Multi-Services, awarding the full amount claimed.

The primary legal issues before the court were whether the adjudication process was unfair, and if so, whether this justified a declaration that the adjudicator's decision was void. Altys Multi-Services argued that the adjudication process was disadvantageous as it did not allow for the presentation of evidence and arguments in the same manner as a curial proceeding. They further contended that the disadvantages in the review procedure rendered the adjudicator's decision void. Grandview Modular Building Systems argued that the statutory scheme provided an adequate and fair process, and any disadvantages did not invalidate the adjudicator's decision.

The court examined the statutory provisions and case law, determining that the adjudication process under the Building and Construction Industry Payments Act 2004 was designed to be a quick and efficient means of resolving payment disputes. The court found that while there were procedural differences between adjudication and curial litigation, these differences did not render the process unfair or void. The court held that the statutory scheme provided sufficient procedural fairness and that the disadvantages alleged did not invalidate the adjudicator's decision. Therefore, the application for a declaration that the adjudication process was unfair and that the adjudicator's decision was void was dismissed.

Orders

Orders of the court

Application dismissed

Background

Background to the litigation

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Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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