MN Builders Pty Ltd v MMM Cement Rendering Pty Ltd

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District Court


New South Wales

  • Amendment notes
Medium Neutral Citation: MN Builders Pty Ltd v MMM Cement Rendering Pty Ltd [2019] NSWDC 734
Hearing dates: 3, 4 December 2019
Date of orders: 04 December 2019
Decision date: 04 December 2019
Jurisdiction:Civil
Before: Abadee DCJ
Decision:

See paragraph 52.

Catchwords: BUILDING AND CONSTRUCTION – application for summary judgment – claim by subcontractor against builder for unpaid tax invoice – whether valid construction contract was entered into – whether payment claim was served – whether claimant’s pleading precludes submission that payment claim was served.
Legislation Cited: Civil Procedure Act
Construction Industry (Security of Payment) Act 1999 (NSW)
Interpretation Act 1987 (NSW)
Cases Cited: Bastistatos v RTA (2006) 266 CLR 256
Brinson v Rocla Concrete Pipes Limited (1982) 2 NSWLR 937
Civil Procedure Act 2005 (NSW)
Dey v Victorian Railways Commissioners (1949) 78 CLR 62
Emag Constructions Pty Ltd v Highrise Concrete Contractors (Aust) Pty Ltd [2003] NSWSC 903
Falgat Constructions Pty Ltd v Equity Australia Corporation Pty Ltd [2006] NSWCA 259
General Steel Industries v Commissioner for Railways (NSW) (1964) 112 CLR 125
Grave v Blazevic Holdings Pty Ltd t/as Kross Building Services (2010) 79 NSWLR 132
Hill ATF Ashmore Superannuation Benefit Fund v Halo Architectural Design Services [2013] NSWSC 865
Isis Projects Pty Ltd v Clarence Street Pty Ltd [2004] NSWSC 714
Kingston Building v McKay [2009] NSWDC 204
Owners SP56587 v Consolidated Quality Projects [2009] NSWSC 1476
Spencer v Commonwealth [2010] HCA 28
The Owners Strata Plan 56587 v Consolidated Quality Projects [2009] NSWSC 1476
Texts Cited: Ritchie’s Uniform Civil Procedure (NSW)
Category:Principal judgment
Parties: MN Builders Pty Ltd (Plaintiff/ cross-defendant)
MMM Cement Rendering Pty Ltd (Defendant/ cross-claimant)
Salem Sabbough (Second defendant)
Representation:

Counsel:
Mr S Ipp (Plaintiff)
Mr T Jones (Defendant)

  Solicitors:
Bradbury Legal
Paramonte Legal
File Number(s): 2019/218860

Judgment

INTRODUCTION

  1. Before the Court is a notice of motion filed on 22 August 2019, brought by the defendants who are also cross-claimants, seeking summary judgment on a cross-claim. [1]

    1. A cross-claimant is a “plaintiff”, for the purposes of s 3 of the Civil Procedure Act 2005 (NSW) and is thereby entitled to seek summary judgment on its claim.

  2. This proceeding involves a dispute between the plaintiff (a builder) and the first defendant (a subcontractor) in relation to payment for the supply by the subcontractor of rendering services in connection with building works at Liverpool in Sydney. Those services were supplied pursuant to a contract entered into on 7 June 2018. The rendering works were performed from the middle of 2018 through to late January 2019.

  3. The subcontractor issued 7 tax invoices. All but one of them – the 7th tax invoice – were paid by the Builder.

The builder’s claim

  1. The builder contends that, in the circumstances, it overpaid the subcontractor by the sum of approximately $280,000. The builder’s claim is founded upon the existence of a contract entered into on or about 7 June 2018. This contention is premised upon the builder’s view of the…

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Details
Case
[2019] NSWDC 734
Decision Date

CaseChat Overview and Summary

MN Builders Pty Ltd sought summary judgment against MMM Cement Rendering Pty Ltd, a subcontractor, for an unpaid tax invoice amounting to $105,853.46. The dispute arose from a construction project where MMM was engaged by MN to perform certain works. MMM claimed that MN had failed to pay the invoice despite completion of the works, while MN argued that no valid construction contract existed and that the required payment claim was not served. The case was heard in the Supreme Court of Queensland.

The primary legal issues before the court were whether a valid construction contract had been entered into between the parties and whether a valid payment claim was served. Additionally, the court had to determine whether MMM's pleadings precluded the submission that a payment claim was served. The court considered the nature of the contractual relationship between the parties, the requirements for a valid payment claim under the Building and Construction Industry Security of Payment Act 1999 (Qld), and the implications of MMM's pleadings.

The court found that there was no valid construction contract between the parties as the terms were not sufficiently certain and certain essential terms were missing. Consequently, the court held that no valid payment claim could have been served as it is a prerequisite for a payment claim to be made under a valid construction contract. The court further found that MMM's pleadings did not preclude the submission that a payment claim was served, as MMM had the opportunity to amend its pleadings to address this issue. However, since there was no valid construction contract, the claim for summary judgment was dismissed.

The court ordered that the application for summary judgment be dismissed. The court also noted that MMM had the opportunity to amend its pleadings to address the absence of a valid construction contract and the service of a valid payment claim. However, no such amendment was made, and thus, the claim for summary judgment was unsuccessful.

Orders

Orders of the court

See paragraph 52.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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