FPM Constructions Pty Limited v Australian Recreation Systems Pty Ltd

FPM Constructions Pty Limited (FPM) and Australian Recreation Systems Pty Ltd (ARS) were parties to a dispute concerning the construction of a deed. The matter came before the New South Wales Court of Appeal.

The primary legal issues before the Court were whether the deed conferred a right to terminate an arbitration, and if so, whether it was reasonable for ARS to determine that the arbitration was not in its best interests to continue. The Court also considered whether there was any utility in pursuing an appeal.

The Court of Appeal found that the deed did not grant ARS an unfettered right to terminate the arbitration. It held that the determination of whether it was in ARS's best interests for the arbitration to continue required an objective assessment, not merely a subjective one. The Court concluded that there was utility in the appeal, as the primary judge had erred in their interpretation of the deed.

Consequently, the appeal was allowed.