Parrwood Pty Ltd v Trinity Constructions (Aust) Pty Ltd

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Court of Appeal


Supreme Court


New South Wales

  • Amendment notes
Medium Neutral Citation: Parrwood Pty Ltd v Trinity Constructions (Aust) Pty Ltd [2020] NSWCA 172
Hearing dates: 6 August 2020
Date of orders: 6 August 2020
Decision date: 11 August 2020
Before: Meagher JA; Leeming JA; Payne JA.
Decision:

1. Appeal dismissed.

2. Appellant to pay the first respondent’s costs.

Catchwords:

BUILDING AND CONSTRUCTION — progress payments — whether right to a progress payment arose before suspension — whether adjudicator determined amount of progress payment — whether adjudicator committed jurisdictional error — whether contractor entitled to withdraw adjudication application under s 26 and file new adjudication application — whether necessary first to obtain declaratory relief –Building and Construction Industry Security of Payment Act 1999 (NSW), ss 8, 9, 13, 22, 26.

Legislation Cited:

Building and Construction Industry Security of Payment Act 1999 (NSW), ss 8, 9, 13, 17, 19, 20, 21, 22, 24, 25, 26, 34

Civil Procedure Act 2005 (NSW), s 101

Uniform Civil Procedure Rules 2005 (NSW), r 42.1

Cases Cited:

Cardinal Project Services Pty Ltd v Hanave Pty Ltd (2011) 81 NSWLR 716; [2011] NSWCA 399

Hossain v Minister for Immigration and Border Protection (2018) 264 CLR 123; [2018] HCA 34

Iskra v MMIR Pty Ltd [2019] NSWCA 126

Minister for Immigration and Multicultural Affairs v Bhardwaj (2002) 209 CLR 597; [2002] HCA 11

Parrwood Pty Ltd v Trinity Constructions (Aust) Pty Ltd [2020] NSWSC 208

PPK Willoughby v Eighty Eight Construction [2014] NSWSC 760

Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd (2018) 264 CLR 1; [2018] HCA 4

Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (in liq) (2019) 99 NSWLR 317; [2019] NSWCA 11

Southern Han Breakfast Point Pty Ltd (in liq) v Lewence Construction Pty Ltd (2016) 260 CLR 340; [2016] HCA 52

Westbourne Grammar School v Gemcan Constructions Pty Ltd [2017] VSC 645

Category:Principal judgment
Parties: Parrwood Pty Ltd (Appellant)
Trinity Constructions (Aust) Pty Ltd (First respondent)
Helen Durham (Second respondent)
AAE Nominations Pty Ltd (Third respondent)
John O’Brien (Fourth respondent)
Adjudicate Today Pty Ltd (Fifth respondent)
Representation:

Counsel:
I Roberts SC, D Byrne (Appellant)
M Pesman SC (First respondent)

Solicitors:
Addisons Lawyers (Appellant)
Colin Biggers & Paisley Lawyers (First respondent)
File Number(s): 2020/104475
Publication restriction: Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Equity Division, Technology and Construction List
Citation:

[2020] NSWSC 208

Date of Decision:
11 March 2020
Before:
Ball J
File Number(s):
2020/30257

Judgment

  1. THE COURT: These are reasons for ordering, following the conclusion of oral submissions, that the appeal from the decision of the primary judge (Ball J) be dismissed with costs.

Background

  1. The active parties to the appeal are Parrwood and Trinity. They entered into a design and construct contract for a residential development. Parrwood was the Principal; Trinity the Contractor. The contract was based upon AS4902-2000 and contained familiar provisions including, in cl 37.1, an entitlement upon Trinity…

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Details
Case
[2020] NSWCA 172
Decision Date

CaseChat Overview and Summary

Parrwood Pty Ltd appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning a dispute arising under the *Building and Construction Industry Security of Payment Act 1999* (NSW). The dispute involved Trinity Constructions (Aust) Pty Ltd's entitlement to a progress payment and the validity of an adjudication determination.

The central legal issues before the Court of Appeal were whether the right to a progress payment arose before the contractor suspended work, whether the adjudicator had determined the amount of the progress payment, and whether the adjudicator had committed jurisdictional error. Further, the court considered whether the contractor was entitled to withdraw its adjudication application under section 26 of the Act and file a new one, and whether it was necessary to obtain declaratory relief before doing so.

The Court of Appeal affirmed the primary judge's findings. It held that the right to a progress payment had arisen before the contractor suspended work, and that the adjudicator had indeed determined the amount of the progress payment. The court found no jurisdictional error on the part of the adjudicator. Crucially, the Court of Appeal determined that section 26 of the Act did not permit the withdrawal of an adjudication application in the circumstances presented, nor was it necessary to obtain declaratory relief to prevent the filing of a subsequent application.

The appeal was dismissed, and Parrwood Pty Ltd was ordered to pay the first respondent's costs.

Orders

Orders of the court

1. Appeal dismissed.

2. Appellant to pay the first respondent’s costs.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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