Goodwin Street Developments Pty Ltd v DSD Builders Pty Ltd

Goodwin Street Developments Pty Ltd (the appellant) sought to appeal a judgment of the Equity Division concerning the validity of an adjudicator's decision made under the *Building and Construction Industry Security of Payment Act 1999* (NSW). The dispute centred on whether the adjudicator had acted in good faith when determining a payment claim. DSD Builders Pty Ltd (the first respondent) and another party (the second respondent) were involved in the proceedings.

The primary legal issues before the Court of Appeal were whether the adjudicator's decision was invalid for a lack of good faith. Specifically, the court considered whether a failure to "grapple with" all matters that the adjudicator was required to consider constituted a lack of good faith, and whether such a lack of good faith required proof of wilful blindness or conscious maladministration.

The Court of Appeal affirmed the principles governing the review of adjudicator decisions for good faith. It held that a failure to consider all relevant matters required by the Act could, in certain circumstances, demonstrate a lack of good faith. However, the court clarified that this did not automatically equate to a requirement for wilful blindness or conscious maladministration. The focus remained on whether the adjudicator genuinely applied their mind to the task and the material before them, rather than on the subjective intent of the adjudicator. The court found no error in the primary judge's assessment of the facts and the application of these principles.

The appeal was dismissed, and the appellant was ordered to pay the respondents' costs.