Equa Building Services Pty Ltd v A&H Floors 2 Doors Australia Pty Ltd

Equa Building Services Pty Ltd, a subcontractor, sought to enforce an adjudication determination against A&H Floors 2 Doors Australia Pty Ltd, the principal contractor, which had ruled in favour of Equa for the sum of $18,838.70. The dispute arose under the Building and Construction Industry Security of Payment Act 1999 (NSW). The court was required to determine if the adjudicator had jurisdiction to make the determination, given that Equa had not served a payment claim prior to the adjudication, and if the adjudicator had denied Equa procedural fairness. The primary concern was whether the adjudicator had the authority to make the determination and if there were any procedural injustices.

The court held that the adjudicator did not have jurisdiction because Equa had not served a payment claim as required by the Act. Further, the adjudicator denied Equa procedural fairness by not allowing Equa to submit evidence or cross-examine witnesses. Consequently, the court quashed the adjudication determination. The court found that the failure to serve a payment claim prior to the adjudication deprived the adjudicator of jurisdiction. Additionally, the adjudicator's refusal to permit Equa to present evidence or cross-examine witnesses amounted to a denial of procedural fairness.

As a result of the court's decision, the adjudication determination was quashed. The court did not grant the relief sought by Equa to enforce the payment but instead ruled that the adjudication process was flawed. This decision highlights the importance of strict compliance with the statutory requirements under the Act and the necessity for adjudicators to ensure fair procedures are followed.