Falgate v Masterform

Falgate brought proceedings against Masterform in the Supreme Court of Queensland, challenging an adjudication determination made by a private adjudicator. The dispute centred on whether the claim submitted by Falgate constituted a valid payment claim under the Building and Construction Industry Security of Payment Act 1999 (Qld), and if the adjudicator's decision was valid given certain procedural issues.

The court was required to determine whether Falgate's claim complied with the statutory requirements for a payment claim. Additionally, the court needed to assess whether the failure to allow the requisite period before applying for adjudication constituted a substantial breach of natural justice. It also had to consider whether the failure to serve the application for adjudication was a breach of natural justice, and whether discontinuing the proceedings in the Supreme Court indicated an abandonment of rights at general law.

The court found that Falgate's claim met all the statutory requirements to be considered a payment claim. However, the court held that Masterform's failure to allow the time required before applying for adjudication was a substantial breach of natural justice. The court also found that Masterform's failure to serve the application for adjudication was not a breach of natural justice. Given that Falgate had discontinued the proceedings in the Supreme Court, the court held that Falgate had abandoned its rights at general law. Consequently, the court set aside the adjudication determination.

The court's final order was to set aside the adjudication determination made by the private adjudicator. The court found that while Falgate's claim was valid, the procedural errors committed by Masterform were significant enough to warrant setting aside the adjudication outcome.