National Management Group Pty Ltd v Biriel Industries Pty Ltd trading as Master Steel (No 2)

The case between National Management Group Pty Ltd and Biriel Industries Pty Ltd trading as Master Steel (No 2) dealt with issues surrounding adjudication decisions made under the Building Industry Fairness (Security of Payment) Act 2017 (Qld). The applicant sought to set aside two adjudication decisions on the basis of jurisdictional error, and was successful in respect of one of the adjudication decisions. The nature of the dispute was rooted in civil proceedings in state and territory courts, specifically addressing the allocation of costs in relation to these adjudication decisions.

The central legal issues the court had to resolve were the principles governing the allocation of costs in adjudication proceedings and the exercise of the court's discretion in this regard. The court needed to determine whether costs should be awarded in accordance with the general rule that costs follow the event, particularly given that both parties experienced varying degrees of success across different issues.

The court meticulously analysed the outcome on an issue-by-issue basis, acknowledging that both parties had achieved some measure of success. Despite the applicant's partial success in setting aside one adjudication decision, the court held that neither party had achieved a definitive or complete victory. Consequently, the court exercised its discretion under the general rule that costs follow the event and decided that both the applicant and the first respondent should bear their own costs of and incidental to the proceedings. There was no order for costs with respect to the second and third respondents.

The court's final orders were that the applicant and the first respondent bear their own costs of and incidental to the proceedings, and there be no order for costs with respect to the second and third respondents.