McConnell Dowell Constructors (Aust) Pty Ltd v Heavy Plant Leasing Pty Ltd

McConnell Dowell Constructors (Aust) Pty Ltd sought a declaration that the adjudication decision made by the third respondent in relation to a claim by Heavy Plant Leasing Pty Ltd was void. The dispute arose from a contract under which McConnell Dowell Constructors was to engage Heavy Plant Leasing Pty Ltd as a subcontractor to perform works on a coal seam gas project. After administrators, receivers and managers were appointed to Heavy Plant Leasing Pty Ltd, McConnell Dowell Constructors exercised a right to determine the employment of Heavy Plant Leasing Pty Ltd. Heavy Plant Leasing Pty Ltd then made a claim for payment from McConnell Dowell Constructors. The third respondent made an adjudication decision in favour of Heavy Plant Leasing Pty Ltd, which McConnell Dowell Constructors challenged, arguing that the decision was void because there was no reference date under a “construction contract” after the determination of Heavy Plant Leasing Pty Ltd’s employment under the contract. The court was required to decide whether the adjudication decision was made without jurisdiction because no “reference date under a construction contract” was available to support the payment claim.

The court found that the adjudication decision was made without jurisdiction because no “reference date under a construction contract” was available to support the payment claim. The court held that the contract between McConnell Dowell Constructors and Heavy Plant Leasing Pty Ltd was effectively terminated when administrators, receivers and managers were appointed to Heavy Plant Leasing Pty Ltd. The court held that there was no “construction contract” in existence after the determination of Heavy Plant Leasing Pty Ltd’s employment under the contract. The court found that the adjudication decision was therefore made without jurisdiction and was void.

The adjudication decision 1161637_320 made by the third respondent and corrected on 8 June 2013 and 13 June 2013 is declared void. The parties shall be heard as to the form of orders and costs.