Clough Projects Australia Pty Ltd v Floreani

The case involved Clough Projects Australia Pty Ltd, the applicant, and Floreani, the respondent. The matter was heard in the Supreme Court of Western Australia, where Clough Projects sought a judicial review of a decision made by an adjudicator under the Construction Contracts Act 2004 (WA). The primary dispute centred on whether the adjudicator had exceeded their jurisdiction and whether there had been a denial of procedural fairness in the adjudication process.

The legal issues before the court were whether the adjudicator's determination was valid, specifically focusing on whether it was based on an implied contract that arose outside of the main contract, and whether the adjudicator had made a decision on a basis that was not argued for by the parties. The applicant argued that the adjudicator's decision was flawed because it was based on a premise not presented by either party, and that this constituted a failure to provide procedural fairness.

The court found that the adjudicator had indeed exceeded their jurisdiction by making a determination on a basis not argued by the parties. Furthermore, the court held that this failure to adhere to the arguments presented by the parties resulted in a denial of procedural fairness. The court emphasised that an adjudicator must base their decision on the submissions made by the parties, and any deviation from this principle could lead to the annulment of the decision. The court granted the applicant's application for judicial review and quashed the adjudicator's determination.