Metier3 Pty Ltd v Enwerd Pty Ltd (No 3)

Metier3 Pty Ltd brought an action against Enwerd Pty Ltd, seeking a determination that Enwerd was obliged to pay the final instalment of the contract price upon the issue of a certificate of Practical Completion. The dispute arose out of the construction of a building, and the matter was heard in the Supreme Court of New South Wales. The central legal issues were whether the certificate of Practical Completion was valid and, if so, whether it entitled Metier3 to the final payment. Additionally, the court had to determine whether the decision by the principals not to set aside the certificate constituted an election between inconsistent rights that gave rise to an estoppel.

The court examined the terms of the Deed of Settlement and related documents, construing them as commercial contracts. It held that the certificate of Practical Completion was valid and that the issue of the certificate entitled Metier3 to the final payment. The court found that the decision by the principals not to set aside the certificate was not an election between inconsistent rights but rather an affirmation of the validity of the certificate. Consequently, this decision did not give rise to an estoppel. The court ruled that Metier3 was entitled to the final payment upon the issue of the certificate of Practical Completion.

The Supreme Court of New South Wales ordered Enwerd Pty Ltd to pay Metier3 the final instalment of the contract price upon the issue of the certificate of Practical Completion. The court emphasised the importance of the parties adhering to the terms of the settlement and the enforceability of the certificate of Practical Completion in the context of the commercial contracts at hand. The decision underscores the need for clear and unambiguous terms in settlement agreements and the consequences of not setting aside a valid certificate of Practical Completion.