Casbee Properties Pty Ltd v Patoka Pty Ltd

Casbee Properties Pty Ltd (the applicant) sought leave to appeal from decisions of a referee and an arbitrator concerning a contract for road construction with Patoka Pty Ltd (the respondent). The dispute centred on the issue of practical completion and the reasonableness of the proprietor requiring non-conforming works to be rectified. The applications for leave to appeal were heard by the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether there was a manifest error of law in the arbitrator's construction of the contract regarding the time of practical completion, and whether the referee erred in their assessment of the reasonableness of the proprietor requiring rectification of non-conforming works. The court was also required to consider whether to grant leave to appeal on discretionary grounds in relation to both the arbitration and reference decisions.

The Court of Appeal found no manifest error of law in the arbitrator's construction of the contract. Similarly, the court held that the referee had applied the correct test of reasonableness in relation to the rectification of non-conforming works, and therefore no error was demonstrated. In relation to both applications, the court exercised its discretion to refuse leave to appeal.

Consequently, leave to appeal was refused in both applications, and the applicant was ordered to pay the respondent's costs.