Discovery Beach Project Pty Ltd v Northbuild Construction Pty Ltd

The case of Discovery Beach Project Pty Ltd v Northbuild Construction Pty Ltd involves a dispute between the parties concerning the jurisdiction of an arbitrator and the validity of an arbitration award. The matter was heard in the Supreme Court of Queensland. The primary issue before the court was whether the arbitrator had jurisdiction to make the awards in question, given that there were separate agreements between the parties that referred certain disputes to experts for determination, contingent upon the consent of a financier that was not expressly given. Additionally, the court had to consider whether the awards amounted to misconduct on the part of the arbitrator and whether the errors of law relied on to set aside the awards were apparent on the face of the record.

The court found that the agreements referring issues for expert determination were indeed subject to the condition precedent of the financier’s consent, which was not fulfilled. However, the court held that despite this, the parties had proceeded consistently with the agreements being in effect. The court also found that the arbitrator had made the awards without jurisdiction, as he had proceeded to hear the matters despite the existence of the expert determination agreements. Furthermore, the court concluded that the errors of law were apparent on the face of the awards, justifying their setting aside. Consequently, the awards were set aside, and the court reserved costs with liberty to apply.

The court declined to grant leave to appeal against the arbitrator’s determinations, finding that the question or error of law did not warrant such an appeal. The final orders of the court were to set aside the arbitrator’s awards of 19 August 2005 and 28 August 2005 and to reserve costs with liberty to apply.