R J Neller Building Pty Ltd v Ainsworth

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SUPREME COURT OF QUEENSLAND

CITATION:  R J Neller Building P/L v Ainsworth [2008] QCA 397
PARTIES:  R J NELLER BUILDING PTY LTD ACN 097 945 581
(respondent)
v
KJERULF DAVID AINSWORTH
(applicant)
FILE NO/S:  Appeal No 7018 of 2008
DC No 95 of 2007
DIVISION:  Court of Appeal
PROCEEDING:  Application for Stay of Execution
ORIGINATING 
COURT: 
District Court at Maroochydore
DELIVERED ON:  9 December 2008
DELIVERED AT:  Brisbane
HEARING DATE:  5 November 2008
JUDGES:  Keane and Fraser JJA and Fryberg J
Separate reasons for judgment of each member of the Court,
each concurring as to the orders made
ORDER: 
1.  Application for leave to appeal struck out
2.  Application for leave to amend the notice of appeal struck out
3.  Application for stay of execution refused
4.  Applicant to pay the respondent's costs of each of the applications to be assessed on the standard basis
CATCHWORDS:  APPEAL AND NEW TRIAL – APPEAL - PRACTICE AND PROCEDURE – QUEENSLAND – STAY OF PROCEEDINGS – WHEN REFUSED – where the respondent was successful in an adjudication of its claim for payment from the applicant for work performed under a construction contract – where the respondent obtained an enforcement warrant against property owned by the applicant based upon the adjudication certificate – where the applicant commenced proceedings against the respondent seeking an order that the adjudication be set aside and damages for breach of contract – where the applicant applied to have the enforcement warrant set aside – where the applicant applied for a stay of the enforcement warrant – whether the learned primary judge erred in dismissing the applications – whether this Court may order a stay of the enforcement warrant pursuant to r 800 of the Uniform Civil Procedure Rules 1999 (Qld)
CONTRACTS  – BUILDING, ENGINEERING AND
RELATED CONTRACTS – REMUNERATION – STATUTORY REGULATION OF ENTITLEMENT TO AND RECOVERY OF PROGRESS PAYMENTS – where the applicant engaged the respondent to carry out renovations to his property – where the applicant, in signing the standard form contract, declared that he is not a "resident owner" – where the respondent carried out the work – where the applicant refused to make all payments to the respondent for the work completed – where the respondent sought to rely upon the provisions of the Building and Construction Industry Payments Act 2004 (Qld) – where the applicant now claims to be a "resident owner" – whether the provisions of the Act apply to the contract between the applicant and respondent
Building and Construction Industry Payments Act 2004 (Qld),
s 3, s 31, s 99, s 100
Domestic Building Contracts Act 2000 (Qld), Sch 2
Uniform Civil Procedure Rules 1999 (Qld), r 800
Alexander v Cambridge Credit Corp Ltd (1985) 2 NSWLR 685,
cited
Brodyn Pty Ltd v Davenport (2004) 61 NSWLR 421;
[2004] NSWCA 394, cited
Cook's Construction P/L v Stork Food Systems Aust P/L
[2008] QCA 322, considered
Deputy Commissioner of Taxation (Vic) v Yosemite
Afforestation Pty Ltd (1988) 19 ATR…
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Details
Case
[2008] QCA 397
Decision Date

CaseChat Overview and Summary

The case of R J Neller Building Pty Ltd v Ainsworth involves the applicant, Neller, appealing against the refusal of Dodds DCJ to grant a stay of enforcement warrant obtained by the respondent, Ainsworth. The dispute originated from a construction contract, where Ainsworth successfully claimed payment for work performed and secured an enforcement warrant against Neller’s property. Subsequently, Neller initiated proceedings seeking to set aside the adjudication and claiming damages for breach of contract, and applied to have the enforcement warrant set aside and for a stay of its enforcement. The primary judge dismissed both applications, leading to this appeal.

The court was required to determine whether the primary judge erred in dismissing the applications and whether this Court could order a stay of the enforcement warrant pursuant to rule 800 of the Uniform Civil Procedure Rules 1999 (Qld). The central issue was whether the court had the authority to grant a stay under the circumstances and if the change in circumstances warranted a re-exercise of the discretion.

The Court found that it had grave doubts whether rule 800 permitted this Court to grant the stay sought by Ainsworth. Even if the Court considered that it had the authority to grant the stay, it would decline to exercise the discretion in Ainsworth’s favour. The Court concluded that the primary judge’s decision was correct, and the application for leave to appeal, the application for leave to amend the notice of appeal, and the application for a stay of execution should all be refused. Consequently, the applicant was ordered to pay the respondent's costs of each of the applications to be assessed on the standard basis.

Orders

Orders of the court

1.

Application for leave to appeal struck out

2.

Application for leave to amend the notice of appeal struck out

3.

Application for stay of execution refused

4.

Applicant to pay the respondent's costs of each of the applications to be assessed on the standard basis

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

Having regard to the terms of r 800 and to this Court's function as a court of appeal, I have grave doubts as to whether r 800 authorises this Court to grant the stay sought by Ainsworth; but even if I were satisfied that this Court is authorised to grant Ainsworth's application, and that the change in circumstances since the decision of Dodds DCJ are sufficient to warrant a fresh exercise of the discretion, I would decline to exercise the discretion in his favour for the reasons already discussed. Conclusion and orders The application for leave to appeal must fail on the basis that the decision of Dodds DCJ was correct. The application for leave to appeal and the application for leave to amend the notice of appeal should be struck out. The application to this Court under r 800 of the UCPR should be refused. Ainsworth should be ordered to pay Neller's costs of each of the applications to be assessed on the standard basis. FRASER JA: I have had the advantage of reading the reasons for judgment of Keane JA. I agree with the orders proposed by his Honour, and with his reasons for those orders. FRYBERG J: I agree with the orders proposed by Keane JA and with his Honour's reasons for them.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.