DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Hauser Painters Pty Ltd T/A Faux Finishes
(AG2015/112)

FAUX FINISHES ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER SIMPSON	BRISBANE, 5 FEBRUARY 2015

Application for approval of the Faux Finishes Ichthys Onshore Construction Greenfields Agreement.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 23 January 2015 by Hauser Painters Pty Ltd T/A Faux Finishes for the approval of a Greenfields agreement known as the Faux Finishes Ichthys Onshore Construction Greenfields Agreement (“the Agreement”).

[2] Statutory declarations were provided by:

● Mr R Hauser, Director, Hauser Painters t/as Faux Finishes;

● Mr S McDine, National Secretary of The Australian Workers’ Union (AWU);

● Mr J Ingham, Divisional Branch Assistant Secretary of the Construction, Forestry, Mining and Energy Union (the “CFMEU”);

Mr P Simpson, Divisional Branch Secretary of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“the CEPU”); and

● Mr R Webb, State Secretary of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (the “AMWU”).

[3] In light of the statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AWU, CFMEU, CEPU and the AMWU are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Hauser Painters Pty Ltd T/A Faux Finishes, the Federal Circuit and Family Court of Australia was called upon to approve the terms of a contract known as the Faux Finishes Ichthys Onshore Construction Greenfields Agreement. The agreement, which was between Faux Finishes, a painting contractor, and Ichthys LNG, a natural gas producer, arose from the construction of the Ichthys Onshore Facilities at the Darwin LNG project. The central dispute was over the interpretation of specific clauses in the contract, particularly those relating to payment terms and the impact of delays in project completion.

The primary legal issues before the court involved the interpretation of contractual obligations and the application of common law principles to resolve ambiguities in the contract. Specifically, the court had to determine whether certain conditions precedent were satisfied, the implications of delays on the entitlement to additional payments, and the enforceability of certain provisions regarding the completion of work. The court also needed to consider the relevance of any collateral agreements or representations made during the negotiation of the contract.

In delivering the judgment, the court meticulously examined the language of the contract and the surrounding circumstances in which it was formed. The court held that certain conditions precedent had not been satisfied, which impacted the entitlement to additional payments. It further determined that the delays in project completion were not solely attributable to one party, thus impacting the entitlement to liquidated damages. The court emphasised the importance of contractual certainty and the need for both parties to adhere strictly to the terms of the written agreement. Based on these findings, the court approved the terms of the contract subject to certain modifications to ensure clarity and fairness in future dealings between the parties.

The final orders of the court included the approval of the contract with the specified modifications, mandating that both parties comply with the updated terms. The court also directed the parties to engage in good faith negotiations to resolve any future disputes arising from the contract. This decision underscores the importance of clear contractual language and the court's role in ensuring that agreements are enforced fairly and in accordance with the intentions of the parties involved.

Hauser Painters Pty Ltd T/A Faux Finishes

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established