Heyday5 Pty Ltd v Cockram Constructions NSW Pty Ltd

The case involved a dispute between Heyday5 Pty Ltd and Cockram Constructions NSW Pty Ltd, with a sub-contract for construction work. The plaintiff, Heyday5, sought an interlocutory injunction to prevent the defendants from calling on a performance bond issued by a third party in relation to the plaintiff's performance under the sub-contract. The plaintiff argued that there was a serious question to be tried as to whether the defendants were not entitled to call on the performance bond and that the balance of convenience favoured granting the injunction.

The primary legal issue was whether there was a serious question to be tried regarding the defendants' entitlement to call on the performance bond. Additionally, the court had to consider whether the balance of convenience favoured granting the interlocutory injunction. The plaintiff contended that the defendants had no right to call on the bond due to the plaintiff's alleged failure to complete the works and that the defendants' entitlement was contingent upon the plaintiff's failure to remedy the alleged defects. The defendants argued that the plaintiff had failed to complete the works and that they were entitled to call on the bond as a result.

The court considered the evidence and submissions from both parties. It found that there was indeed a serious question to be tried regarding the defendants' entitlement to call on the performance bond. The court also determined that the balance of convenience favoured granting the interlocutory injunction. The court held that the plaintiff had established a prima facie case and that the risk of irreparable loss and damage outweighed the defendants' interests in calling on the bond. The court therefore granted the injunction, preventing the defendants from calling on the performance bond until the substantive proceedings were resolved.

The court's final orders included granting the interlocutory injunction to the plaintiff, Heyday5 Pty Ltd, and restraining the defendants, Cockram Constructions NSW Pty Ltd and the third party, from calling on the performance bond until the substantive proceedings were determined.