Plaza West Pty Limited v Simon's Earthworks (NSW) Pty Limited

Plaza West Pty Limited, a construction company, brought a claim against Simon's Earthworks (NSW) Pty Limited, another construction company, under the Building and Construction Industry Security of Payment Act 1999 (NSW). The dispute centred on the amount owed to Plaza West by Simon's Earthworks under a contract for roadworks. The matter was initially determined by an adjudicator who found in favour of Plaza West. Simon's Earthworks challenged the adjudicator's determination in the District Court, which upheld the adjudicator's decision. Simon's Earthworks then sought to recoup part of the sum paid to Plaza West from the District Court, alleging that it had directly paid a subcontractor. Plaza West argued that the matter should be dealt with in a cross claim under the Act or in the District Court.

The court was required to determine whether the adjudicator's approach to calculating the progress payment was valid, whether the adjudicator denied natural justice by not considering Simon's Earthworks' further submissions, and whether Simon's Earthworks' claim for repayment of part of the sum paid to Plaza West should be dealt with in a cross claim or in the District Court. The court held that the adjudicator's approach to calculating the progress payment was valid as it was a matter for the adjudicator to determine, and the adjudicator had made a bona fide attempt to exercise the power conferred by the Act. The court also held that the adjudicator did not deny natural justice by not considering Simon's Earthworks' further submissions as it was unnecessary to do so by reason of acceptance of Plaza West's primary submission. Finally, the court held that Simon's Earthworks' claim for repayment of part of the sum paid to Plaza West was properly a matter for a cross claim under the Act or in the District Court with respect to its own judgment.

The court found in favour of Plaza West on all counts. The adjudicator's determination was upheld, and Simon's Earthworks was ordered to pay Plaza West the sum determined by the adjudicator, plus interest and costs. The court also held that Simon's Earthworks' claim for repayment of part of the sum paid to Plaza West should be dealt with in a cross claim under the Act or in the District Court with respect to its own judgment. The court dismissed Simon's Earthworks' appeal and ordered it to pay Plaza West's costs of the appeal.