Quasar Constructions v Demtech Pty Ltd

Case [2004] NSWSC 116


CITATION: Quasar Constructions v Demtech Pty Ltd [2004] NSWSC 116
HEARING DATE(S): 26/02/04
JUDGMENT DATE:
4 March 2004
JURISDICTION:
Equity Division
Technology and Construction List
JUDGMENT OF: Barrett J
DECISION: Determination of adjudicator quashed
CATCHWORDS: ADMINISTRATIVE LAW - judicial review of determination of adjudicator under Building and Construction Industry Security of Payment Act - whether jurisdicitonal error of law - unpaid balance of lump sum price awarded as progress payment where contract terminated and part of contracted work incomplete
LEGISLATION CITED: Building and Construction Industry Security of Payment Act 1999, ss.8, 9, 10, 13, 14, 22
CASES CITED: Abacus Funds Management Ltd v Davenport [2003] NSWSC 1027
Brodyn Pty Ltd v Davenport [2003] NSWSC 1019
Jemzone Pty Ltd v Trytan Pty Ltd (2002) 42 ACSR 42
Multiplex Constructions Pty Ltd v Luikens [2003] NSWSC 1140
Musico v Davenport [2003] NSWSC 977
Paynter Dixon Constructions Pty Ltd v J F & C G Tilston Pty Ltd [2003] NSWSC 869
Paynter Dixon Constructions Pty Ltd v J F & C G Tilston Pty Ltd [2004] NSWSC 85
Transgrid v Siemens Ltd [2004] NSWSC 87
Transgrid v Walter Construction Group Ltd [2004] NSWSC 21
Walter Construction Group Ltd v CPL (Surry Hills) Pty Ltd [2003] NSWSC 266

PARTIES :

Quasar Constructions NSW Pty Ltd - Plaintiff
Demtech Pty Ltd - First Defendant
Damien Michael - Second Defendant
Mediate Today Pty Limited - Third Defendant
FILE NUMBER(S): SC 55009/04
COUNSEL: Mr M Christie - Plaintiff
Mr D A C Robertson - First Defendant
SOLICITORS: James R Knowles Lawyers Pty Limited
Dutton Lawyers - First Defendant

IN THE SUPREME COURT
OF NEW SOUTH WALES
EQUITY DIVISION
TECHNOLOGY AND
CONSTRUCTION LIST

BARRETT J

THURSDAY, 4 MARCH 2004

55009/04 – QUASAR CONSTRUCTIONS NSW PTY LTD v DEMTECH PTY LTD & 2 ORS

JUDGMENT

1 By its summons filed on 18 February 2004, the plaintiff claims an order under s.69(1) of the Supreme Court Act 1970 in the nature of certiorari quashing an adjudication determination made by the second defendant under the Building and Construction Industry Security of Payment Act 1999, a declaration that the determination is null and void and consequential relief, including an order that the first defendant be restrained from taking any steps in relation to or arising from the determination. The second defendant, by whom the determination was made in exercise of the adjudicatory function conferred by the Act, has filed a submitting appearance except as to costs.

2 The plaintiff was, it appears, engaged upon certain construction work in relation to Campbelltown Mall. It retained the first defendant to carry out demolition work. It is accepted, for present purposes, that a contract between them came into force in April 2003. On or about 8 December 2003, the first defendant submitted to the plaintiff a document of that date in the form of a tax invoice expressed to be a payment claim under the Act. The sum claimed was $327,376.55. That sum was made up as follows:

          Contract Amount $ 276,528 . 07
          Variations…

Continue reading Quasar Constructions v Demtech Pty Ltd

Sign in free to access the full text

Details
AGLC
Quasar Constructions v Demtech Pty Ltd [2004] NSWSC 116
Case
[2004] NSWSC 116
Decision Date

CaseChat Overview and Summary

The matter of Quasar Constructions against Demtech Pty Ltd came before the court to determine the validity of a decision made by an adjudicator under the Building and Construction Industry Security of Payment Act. The dispute arose due to an unpaid balance of a lump sum price for a progress payment, following the termination of a construction contract where part of the contracted work remained incomplete. The court was tasked with examining whether there was a jurisdictional error of law in the adjudicator's determination, which awarded the progress payment to Quasar Constructions.

The central legal issue before the court was whether the adjudicator's decision contained a jurisdictional error of law. This involved assessing whether the adjudicator properly interpreted the statutory provisions of the Building and Construction Industry Security of Payment Act and applied them correctly to the facts of the case. Specifically, the court needed to determine whether the adjudicator had the authority to award a progress payment when the contract was terminated and some work remained incomplete. This required a close examination of the statutory language and the adjudicator's reasoning in light of the circumstances of the contract.

In examining the adjudicator's decision, the court found that the adjudicator had indeed erred in law. The court determined that the adjudicator had misconstrued the statutory provisions, leading to an incorrect application of the law. The court held that the adjudicator should not have awarded the disputed progress payment because the statutory scheme does not permit such an award in circumstances where the contract has been terminated and part of the work remains incomplete. Consequently, the court quashed the adjudicator's determination and remitted the matter back for reconsideration by a new adjudicator.

The court's decision concluded that the adjudicator's determination was flawed due to a jurisdictional error of law. The court quashed the original decision and ordered that the matter be reconsidered by a new adjudicator in accordance with the law. This ruling underscored the importance of correctly interpreting and applying statutory provisions in the context of construction disputes, particularly under the Building and Construction Industry Security of Payment Act.

Orders

Orders of the court

Full text does not contain this section.

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

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.