Dewu Pty Ltd v Fabiano

The Federal Court was presented with an adjudication application brought by Dewu Pty Ltd against Fabiano. The dispute arose from a construction contract wherein Dewu sought payment for work performed under a subcontract. Fabiano, on the other hand, contested the claim, leading to the adjudication process. The primary legal issue before the court was whether an adjudicator's error in the interpretation or application of the construction contract constituted an error within the adjudicator's jurisdiction. The court was also tasked with determining if the adjudicator indeed erred in their assessment.

The court examined the nature of errors that could be considered jurisdictional. It concluded that errors concerning the terms, construction, or application of the contract did not necessarily fall within the adjudicator's jurisdiction. However, the court found that if the adjudicator had failed to follow the correct process or had acted beyond their powers, this would constitute a jurisdictional error. The court found that the adjudicator in this instance had erred in their application of the contract terms, but this did not amount to a jurisdictional error. The court determined that the adjudicator's error did not prevent the enforcement of the adjudicator's decision.

In summary, the court ruled that the adjudicator's error, while significant, did not fall within the category of jurisdictional errors that would invalidate the decision. The court upheld the adjudicator's decision and ordered Fabiano to make the payment as determined by the adjudicator. The ruling underscored the importance of adhering to procedural correctness in adjudication, while also highlighting the limited scope of jurisdictional errors in such proceedings.