Cooper & Oxley Builders Pty Ltd v Steensma

In the matter of Cooper & Oxley Builders Pty Ltd versus Steensma, the dispute was brought before the court concerning issues arising from the adjudication of payment claims under the Construction Contracts Act. The primary parties involved were Cooper & Oxley Builders Pty Ltd, the applicant, and Steensma, the respondent. The court was tasked with determining whether the adjudicator was obliged to consider a set-off defence to a payment claim and whether the adjudicator made a jurisdictional error by supplying subcontract terms into the primary contract via section 17 of the Act. Additionally, the court had to examine if the adjudicator erred by considering evidence that arose after the payment claim was made and ascertain the time at which liability is to be determined under the Act.

The legal issues centred on whether the adjudicator's failure to consider the set-off defence constituted a jurisdictional error. Furthermore, the court had to determine if the adjudicator erred by supplying subcontract terms into the primary contract and whether the adjudicator should have taken into account evidence that surfaced post the making of the payment claim. The applicant argued that these actions constituted jurisdictional errors that warranted the issuance of certiorari. The respondent contended that the adjudicator's decisions were within their jurisdiction and did not warrant judicial review.

In delivering its judgment, the court held that the adjudicator was indeed obliged to consider the set-off defence, and the failure to do so constituted a jurisdictional error. The court found that the adjudicator's actions in supplying subcontract terms into the primary contract via section 17 of the Act was also a jurisdictional error. Furthermore, the court ruled that the adjudicator should not have considered evidence that arose after the payment claim was made, as this was a breach of the procedural fairness principle. The court concluded that these errors were material and warranted the issuance of certiorari to quash each determination.