SUPREME COURT OF QUEENSLAND
CITATION:
James Trowse Constructions Pty Ltd v ASAP Plasterers Pty Ltd & Ors [2011] QSC 145
PARTIES:
JAMES TROWSE CONSTRUCTIONS PTY LTD
ACN 060 390 347
(applicant)
v
ASAP PLASTERERS PTY LTD
ACN 095 118 139
(first respondent)
RICS AUSTRALASIA PTY LTD
ACN 089 873 067
(second respondent)
CHRISTOPHER WILLS(third respondent)
FILE NO:
SC No 6227 of 2010
DIVISION:
Trial Division
PROCEEDING:
Originating Application
DELIVERED ON:
2 June 2011
DELIVERED AT:
Brisbane
HEARING DATES:
3, 4, 5 August 2010
13, 14 October 2010
JUDGE:
Atkinson J
ORDERS:
The building adjudication decision made by the third respondent in favour of the first respondent on 17 May 2010 be set aside.
CATCHWORDS:
CONTRACTS – BUILDING, ENGINEERING AND RELATED CONTRACTS – REMUNERATION – STATUTORY REGULATION OF ENTITLEMENT TO AND RECOVERY OF PROGRESS PAYMENTS – PROGRESS PAYMENTS – where the applicant entered into a subcontract with the first respondent to carry out certain contractual works – where the first respondent served a payment claim on the applicant pursuant to the Building and Construction Industry Payments Act 2004 (Qld) – where the third respondent adjudicator made an adjudication decision in favour of the first respondent – where the applicant argued that the adjudicator failed to properly consider the construction contract and decided a variation claim on a basis which neither party had contended – whether the adjudicator’s decision was tainted by an absence of good faith and/or breach of natural justice – whether the adjudication should be set aside
ADMINISTRATIVE LAW – JUDICIAL REVIEW – NATURAL JUSTICE – where the applicant sought declarations that the adjudication decision was void or liable to be set aside and orders that the decision be set aside or be permanently stayed – where the first respondent argued that if the adjudication decision was infected by jurisdictional error that part of the decision could be severed – whether the common law doctrine of severance applied
Building and Construction Industry Payments Act 2004 (Qld), s 7, s 12, s 17, s 18, s 21, s 23(1), s 24, s 26(2), s 29, s 99(2)(b), Schedule 2
Building and Construction Industry Security of Payment Act 2002 (Vic), s 10B, s 23(2A), s23(2B)
Judicial Review Act 1991 (Qld), Schedule 1 Part 2Supreme Court Act 1995 (Qld), s 128
David & Gai Spankie & Northern Investment Holdings Pty Limited v James Trowse Constructions Pty Limited & Ors [2010] QSC 29, cited
Gantley Pty Ltd v Phoenix International GroupPty Ltd [2010] VSC 106, distinguished
Holmwood Holdings Pty Ltd v Halkat Electrical Contractors Pty Ltd [2005] NSWSC 1129, cited
John Holland Pty Ltd v TAC Pacific Pty Ltd & Ors [2009] QSC 205, cited
Multiplex Constructions Pty Ltd v Luikens and Anor [2003] NSWSC 1140, cited
Northbuild Construction Pty Ltd v Central Interior Linings Pty Ltd & Ors [2010] QSC 95, cited
Northbuild Construction P/L v Central Interior Linings P/L & Ors [2011] QCA 22, followed
Queensland Bulk Water Supply Authority t/a…
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- Case
- [2011] QSC 145
- Decision Date
CaseChat Overview and Summary
The primary legal issues in the case were whether the adjudicator’s decision was marred by an absence of good faith or a breach of natural justice, and if so, whether the adjudication should be set aside. The applicant argued that the adjudicator did not properly consider the construction contract and decided a variation claim on a basis neither party had argued. The applicant also sought declarations that the adjudication decision was void or liable to be set aside, along with orders to set aside or permanently stay the decision.
The court found that the adjudicator’s decision was indeed tainted by an absence of good faith and a breach of natural justice, leading to the conclusion that the adjudication should be set aside. The court held that the adjudicator failed to adequately consider the construction contract and made decisions based on a premise not argued by either party. Additionally, the court rejected the first respondent’s argument that if the adjudication decision contained jurisdictional errors, the flawed parts could be severed. The court determined that the common law doctrine of severance did not apply in this context.
The final order was that the building adjudication decision made by the third respondent in favour of the first respondent on 17 May 2010 be set aside.
Orders
Orders of the court
The building adjudication decision made by the third respondent in favour of the first respondent on 17 May 2010 be set aside.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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