MKA Bowen v Carelli Constructions

Case [2019] VSC 436


IN THE SUPREME COURT OF VICTORIA AT MELBOURNE
COMMERCIAL COURT
TECHNOLOGY, ENGINEERING & CONSTRUCTION LIST
Not Restricted

S ECI 2019 0836  

MKA BOWEN INVESTMENTS PTY LTD (ACN 600 897 792) Plaintiff
v  

CARELLI CONSTRUCTIONS PTY LTD (ACN 606 840 331)

and

PHILIP MARTIN (in his capacity as Adjudicator appointed under
s 20(1) of the Building and Construction Industry Security of Payment Act 2002 (Vic))

First Defendant

Second Defendant

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JUDGE:

Digby J

WHERE HELD:

Melbourne

DATE OF HEARING:

10 May 2019

DATE OF JUDGMENT:

24 September 2019

CASE MAY BE CITED AS:

MKA Bowen v Carelli Constructions

MEDIUM NEUTRAL CITATION:

[2019] VSC 436

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ADMINISTRATIVE LAW – Judicial review – Relief in the nature of certiorari – Whether Adjudication Determination is vitiated by jurisdictional error as a result of a payment claim not served ‘on and from’ the relevant reference date – Whether an Adjudication Determination is vitiated by jurisdictional error as a result of a failure to determine that a payment claim was made because it was the second payment claim within the one reference date – Adjudication Determination quashed as it was not served on and from the relevant reference date – Building and Construction Industry Security of Payment Act 2002 (Vic), ss 9(1), 9(2)(a), 14(1), 14(8), 28Q.

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APPEARANCES:

Counsel Solicitors
For the Plaintiff Mr L Connolly HWL Ebsworth Lawyers
For the First Defendant Mr N Phillpott Gadens Lawyers

HIS HONOUR:

Application

  1. By Originating Motion and Summons dated 27 February 2019, MKA Bowen Investments Pty Ltd (plaintiff) seeks orders quashing the Adjudication Determination dated 15 February 2019[1] (Adjudication Determination) made by the second defendant, Mr Philip Martin[2] (Adjudicator), on the grounds that:

    [1]CB968-CB989.

    [2]By letter dated 8 March 2019 the second defendant advised the Court he does not intend to take any active role in the proceeding and will abide the decision of the Court, save for any costs order being considered against him.

(a)        Ground 1

The Adjudicator committed jurisdictional error, alternatively acted ultra vires or erred in law, in determining that the payment claim served by the first defendant, Carelli Constructions Pty Ltd, on or about 21 December 2018 (December Payment Claim) was valid in circumstances where it was not served ‘on and from’ the relevant ‘reference date’; and

(b)        Ground 2

Further, and in the alternative, the Adjudicator committed jurisdictional error, alternatively acted ultra vires or erred in law, in failing to determine that the December Payment Claim was in breach of s 14(8) of the Building and Construction Industry Security of Payment Act 2002 (Vic) (SoP Act (Vic)) in circumstances where it was the second payment claim within the one reference date as prohibited by that provision.

  1. By its Originating Motion the plaintiff seeks:

(a)        to restrain Carelli Constructions Pty Ltd (first defendant), whether by itself, its servants, or otherwise howsoever from seeking to enforce or take action under the SoP Act (Vic) in relation to the Adjudication Determination;

(b) to restrain the Adjudicator whether by himself, his servants or otherwise howsoever…

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MKA Bowen v Carelli Constructions [2019] VSC 436
Case
[2019] VSC 436
Decision Date

CaseChat Overview and Summary

MKA Bowen commenced proceedings against Carelli Constructions, seeking a declaration that a payment claim served by Bowen was valid and enforceable, along with other remedies. The case was heard in the Supreme Court of Victoria. The central dispute revolved around the validity of an Adjudication Determination made by an adjudicator, which rejected Bowen's payment claim. The core legal issues were whether the determination was flawed due to the payment claim not being served "on and from" the relevant reference date, and whether the adjudicator's failure to acknowledge that the payment claim was the second one within the same reference date constituted a jurisdictional error.

The court examined the statutory provisions under the Building and Construction Industry Security of Payment Act 2002 (Vic), particularly sections 9(1), 9(2)(a), 14(1), 14(8), and 28Q, to determine the proper procedure for serving a payment claim. It concluded that the payment claim did not comply with the requirement of being served "on and from" the reference date, as stipulated by section 9(2)(a). Additionally, the court found that the adjudicator did not explicitly address the fact that the payment claim was the second one within the same reference date, which constituted a jurisdictional error under section 14(8). Based on these findings, the court quashed the Adjudication Determination.

Ultimately, the court quashed the Adjudication Determination, finding it to be vitiated by jurisdictional error due to non-compliance with the statutory requirements for serving a payment claim and the adjudicator's failure to address the second payment claim within the same reference date. The court did not provide further orders as the primary remedy sought by Bowen was the quashing of the determination.

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Background

Background to the litigation

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Ratio Decidendi

Legal Principle Established

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