CMC Cairns P/L v Isicob P/L

CMC Cairns P/L (appellant) sought to appeal a decision that terminated arbitration proceedings against Isicob P/L (respondent), a dispute that arose from a building contract. The subcontractor, CMC Cairns, did not raise any objection to the amount paid by the builder, Isicob, until approximately six years after the completion of the works. The primary question before the court was whether the arbitration proceedings should be terminated due to the delay in raising the claim. Additionally, the court needed to determine whether a dispute must be communicated to the other party to establish when it first arose, and if the six-year delay constituted an inordinate and inexcusable delay under the Commercial Arbitration Act 1990 (Qld).

The court examined the relevant legislation, including the Limitation of Actions Act 1974 (Qld), and considered precedents from various cases. It found that the critical factor was whether the delay was inordinate and inexcusable, not the mere passage of time. The court held that the delay in this case was significant, and the failure to communicate the dispute promptly exacerbated the delay. The court also considered the nature of the delay, concluding that it was unreasonable and had prejudiced the builder. The court applied the principles established in previous cases, such as Rheem Australia Limited v Federal Airports Corporation and Santos Ltd & Ors v Pipelines Authority of South Australia, to support its decision.

The appeal was dismissed, and the original decision to terminate the arbitration proceedings was upheld. The court found that the delay in raising the claim was inordinate and inexcusable, leading to the termination of the arbitration. The court ordered that the appeal be dismissed with costs, meaning that CMC Cairns P/L would be responsible for the costs of the appeal.