Civil Mining and Construction Pty Ltd v Wiggins Island Coal Export Terminal Pty Ltd (No 3)

In the case of Civil Mining and Construction Pty Ltd v Wiggins Island Coal Export Terminal Pty Ltd (No 3), the Supreme Court of Queensland was tasked with resolving a dispute arising from a construction contract between the plaintiff, Civil Mining and Construction Pty Ltd, and the defendant, Wiggins Island Coal Export Terminal Pty Ltd. The primary issues included the quantification of delay claims, the recoverability of interest on sums secured by a bank guarantee, and the interpretation of statutory interest provisions in Queensland.

The court examined whether the plaintiff was entitled to depart from the Overheads Spreadsheet in quantifying its delay claim, and whether it could re-open its case to lead expert evidence. The court also considered whether interest was payable on moneys secured by a bank guarantee under section 58 of the Civil Proceedings Act 2011 (Qld). Furthermore, the court had to interpret the meaning of 'money' in section 58 and determine the purpose of an award of interest. The court also examined whether section 67P of the Queensland Building and Construction Commission Act 1991 (Qld) provided for 'penalty interest', entitling the plaintiff to both statutory and contractually agreed interest, and the meaning of 'penalty rate' in section 67P. Lastly, the court had to decide whether the plaintiff's claims were more accurately characterised as claims for unliquidated damages or as moneys owed under the contract, and the applicable rate of interest.

The court held that the plaintiff was not entitled to depart from the Overheads Spreadsheet and denied leave to re-open the case to lead expert evidence, in line with the Court of Appeal's decision. Regarding interest on moneys secured by a bank guarantee, the court found that interest was payable under section 58 of the Civil Proceedings Act, with 'money' including sums secured by a bank guarantee. The court also held that section 67P did not provide for 'penalty interest' and that the purpose of an award of interest was to compensate for the loss of the use of money. The court further determined that the plaintiff's claims were more accurately characterised as moneys owed under the contract, and that interest accrued retrospectively from the date of the determination of the court or arbitrator.

The final orders of the court included judgment for the plaintiff in the sum of $3,562,586.38 plus GST, together with interest as specified. The court also ordered the defendant to return an ANZ Bank Guarantee within seven days from the date of judgment. The defendant was awarded judgment against the plaintiff in the sum of $2,936,844.61, together with interest as specified. The court reserved costs for further hearing.