SUPREME COURT OF QUEENSLAND
CITATION: Paladin Projects Pty Ltd v Visie Three Pty Ltd & Ors [2024] QSC 230 PARTIES: PALADIN PROJECTS PTY LTD ACN 604 051 578
(applicant)
vVISIE THREE PTY LTD ACN 601 326 667
(first respondent)
NANCY ALEXANDER (ADJUDICATION REGISTRAR)
(second respondent)
DAVID ROBERT THOMAS SEENEY (ADJUDICATOR J1261305)
(third respondent)
FILENO/S: BS No 6272 of 2024 DIVISION:
Trial Division
PROCEEDING: Originating Application ORIGINATING COURT: Supreme Court at Brisbane DELIVEREDON: 25 September 2024 DELIVEREDAT: Brisbane HEARINGDATE: 19 June 2024 JUDGE: Williams J ORDERS: 1. The parties are directed to agree an order reflecting these reasons and provide it to the Associate to Williams J by 2 October 2024.
2. If an order cannot be agreed, both parties are directed to provide their proposed order, together with an explanation for the differences of no more than 2 pages, to the Associate to Williams J by 2 October 2024.
3. I will hear from the parties as to costs after the order has been made.
CATCHWORDS: CONTRACTS – BUILDING, ENGINEERING AND RELATED CONTRACTS – REMUNERATION – STATUTORY REGULATION OF ENTITLEMENT TO AND RECOVERY OF PROGRGRESS PAYMENTS – ADJUDICATION OF PAYMENT CLAIMS – where the
applicant, as a contractor, entered into a construction contract with the first respondent, as principle – where the applicant lodged an adjudication application in respect of a Payment Claim – where the applicant seeks judicial review of the adjudicator’s decision – whether parts of the adjudication decision are affected by jurisdictional error – whether the adjudicator considered new reasons for withholding payment in contravention of s 88(3)(b) – whether the adjudicator considered material outside the statutory limitation in s 88(2) – whether the adjudicator’s decision denied the applicant natural justice – whether it was established on the evidence that there was a realistic possibility the adjudicator would have made a different decision – whether orders that the identified parts of the adjudication decision be severed pursuant to s 101(4) of the Building Industry Fairness (Security of Payment) Act 2017 (Qld)
ADMINISTRATIVE LAW – JUDICIAL REVIEW – GROUNDS OF REVIEW – JURISDICTIONAL MATTERS
– where the applicant, as a contractor, entered into a construction contract with the first respondent, as principle – where the applicant lodged an adjudication application in respect of a Payment Claim – where the applicant seeks judicial review of the adjudicator’s decision – whether parts of the Adjudication Decision are affected by jurisdictional error and are void with the balance of the adjudication decision to remain binding on the parties to the proceeding
Building Industry Fairness (Security of Payment) Act 2017
(Qld), s 82(3)-(5), s 88(3)(b), s 101(4)
Building and Construction Industry (Portable Long Service Leave) Act 1991(Qld) s 75,
Queensland Building and Construction Commission Act 1991
(Qld) s 68B, s 70
Acciona Agua Australia Pty Ltd v Monadelphous Engineering Pty Ltd [2020] QSC 133, followedNorthbuild Construction Sunshine Coast Pty Ltd v Beyfield Pty Ltd [2015] 1 Qd R 463, applied
The Minister for Commerce v Contrax Plumbing (NSW)…
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- Case
- [2024] QSC 230
- Decision Date
CaseChat Overview and Summary
The legal issues the court was required to decide included whether parts of the adjudication decision were affected by jurisdictional error, specifically whether the Adjudicator considered new reasons for withholding payment in contravention of s 88(3)(b) of the Building Industry Fairness (Security of Payment) Act 2017 (Qld), whether the Adjudicator considered material outside the statutory limitations in s 88(2), and whether the Adjudicator's decision denied the Applicant natural justice. The Applicant argued that the decision on liquidated damages, Variation 60, and Variation 62 contained jurisdictional errors. The First Respondent contended that any errors did not affect the outcome and that the Adjudicator's decision on Variation 62 was not a breach of natural justice.
The court examined the statutory framework and the Adjudicator's reasoning in the adjudication decision. It found that the Adjudicator had indeed considered new reasons for withholding payment in relation to Variation 60, which was a jurisdictional error under s 88(3)(b) of the BIF Act. Additionally, the consideration of the Building and Construction Industry (Portable Long Service Leave) Act 1991 and Part 5 of the Queensland Building and Construction Commission Act 1991 in relation to Variation 62 constituted a jurisdictional error as it exceeded the statutory limitations in s 88(2). However, the court found no substantial breach of natural justice regarding the decision on liquidated damages as the First Respondent had not demonstrated a realistic possibility that the outcome would have been different had the Applicant had the opportunity to make further submissions. Consequently, the court found that the parts of the adjudication decision concerning Variation 60 and Variation 62 were void due to jurisdictional errors, while the balance of the decision remained binding.
The court ordered the parties to agree on an order reflecting these reasons and provide it to the Associate to Williams J by 2 October 2024. If an agreement cannot be reached, the parties must submit their proposed orders with explanations for the differences, no longer than two pages, by the same date. The court will address costs after the order has been made.
Orders
Orders of the court
1. The parties are directed to agree an order reflecting these reasons and provide it to the Associate to Williams J by 2 October 2024.
2. If an order cannot be agreed, both parties are directed to provide their proposed order, together with an explanation for the differences of no more than 2 pages, to the Associate to Williams J by 2 October 2024.
3. I will hear from the parties as to costs after the order has been made.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
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