Forico Pty Limited v Sive

Forico Pty Limited, an appellant, brought proceedings against Sive, a respondent, in the Supreme Court of Victoria. The case involved a dispute over the determination of progress payments under a building and construction contract. The primary issue was whether the adjudicator, who had assessed the payment claim, made a jurisdictional error in his decision.

The court was required to determine whether the adjudicator's decision was legally sound and whether it was open to challenge on the grounds of a jurisdictional error. This involved examining the statutory framework governing the adjudication of progress payments and the principles of natural justice. The court also had to consider whether the adjudicator's decision was based on an incorrect interpretation of the contract or if there were procedural flaws in the adjudication process.

The Supreme Court held that the adjudicator had indeed made a jurisdictional error. The error stemmed from an incorrect interpretation of the contract provisions, which led to an unfair assessment of the payment claim. The court found that the adjudicator failed to consider certain contractual obligations and had misapplied the applicable statutory provisions. As a result, the court quashed the adjudicator's decision and remitted the matter for reassessment. The court emphasised the importance of adhering to statutory requirements and ensuring that adjudication processes comply with the principles of natural justice.

The final orders of the court included the quashing of the adjudicator's decision and the direction for a new adjudication to be conducted in accordance with the statutory requirements and the principles of natural justice. The court also awarded costs to the appellant, Forico Pty Limited, for the successful proceedings.