DISTRICT COURT OF QUEENSLAND
CITATION:
RJ Neller Building Pty Ltd v Ainsworth [2008] QDC 129
PARTIES:
RJ NELLER BUILDING PTY LTD
Plaintiff/Respondent
v
KJERULF DAVID AINSWORTH
Defendant/Applicant
FILE NO:
95 of 2007
DIVISION:
Civil
PROCEEDING:
Application
ORIGINATING COURT:
District Court, Maroochydore
DELIVERED ON:
25 June 2008
DELIVERED AT:
Maroochydore
HEARING DATE:
23 May 2008
JUDGE:
K S Dodds, DCJ
ORDER:
The application is refused with costs.
CATCHWORDS:
BUILDING CONTRACTS – RESOLUTION OF DISPUTES – ADJUDICATION – where respondent to adjudication brought proceeding in District Court arising out of same contract as adjudication – where proceeding in District Court brought after adjudicators certificate served on respondent to adjudication but before adjudicators certificate filed in District Court – whether enforcement warrant issued upon judgment in District Court on filing of adjudication certificate should be stayed
Building and Construction Industry Payments Act 2004 (Qld) s 31, s 100
Uniform Civil Procedure Rules r 667, r 791
Building and Construction Industry Security of Payment Act 1999 (NSW)
Cases cited:
Brodyn Pty Ltd v Davenport & Anor (2004) NSWCA 394
COUNSEL:
L C Alford for the plaintiff/respondent
P W Hackett for the defendant/applicant
SOLICITORS:
Ray Barber for the plaintiff/respondent
Morgan Conley Solicitors for the defendant/applicant
This application by Kjerulf David Ainsworth sought:
A declaration:
§that RJ Neller Building Pty Ltd had notice that proceedings in the District Court at Brisbane (BD1247/2007) had been commenced prior to obtaining judgment on 3 May 2004 by filing an adjudication certificate pursuant to section 31 of the Building and Construction Industry Payments Act 2004 (the Act);
Orders:
§that the enforcement warrant issued by the District Court at Maroochydore on 6 March 2008 be set aside pursuant to rules 667 and 791 of the Uniform Civil Procedure Rules (UCPR);
§that enforcement of the judgment of 3 May 2007 be stayed until further order pursuant to rule 800 of UCPR;
§for costs on the indemnity basis.
At the hearing, counsel for the applicant proposed that orders be made staying the enforcement warrant, granting liberty to apply and that the costs of the application be part of the parties costs in proceeding 1247 of 2007 upon the applicant’s undertaking not to encumber transfer assign or otherwise deal with certain real property upon which the respondent had performed building or construction work so as to reduce his equity therein below $150,000 pending final determination of proceeding 1247 of 2007.
Proceeding BD1247 of 2007
On 2 May 2007 Ainsworth filed a claim and statement of claim in the District Court at Brisbane. The claim sought:
Declarations:
§he was not indebted to RJ Neller Building Pty Ltd (Neller) in any amount;
§an adjudicator appointed under the Act one, Philip Martin (Martin) had no jurisdiction to make a determination pursuant to the Act;
§the adjudicator wrongfully determined liability pursuant to the Act;
§the adjudication was invalid.
Orders:
§that the adjudication be set aside;
§for damages for loss suffered by Ainsworth due to defective and unfinished work of Neller;
§for damages for legal expenses incurred by Ainsworth…
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- Case
- [2008] QDC 129
- Decision Date
CaseChat Overview and Summary
The court examined whether Ainsworth had provided sufficient discretionary factors to persuade the court to stay the enforcement of the judgment. It was noted that Ainsworth, as a person of substance with a substantial equity in the property, would undertake not to diminish that equity below $150,000, while Neller was a $2 private company with significant financial risks. However, the court held that Ainsworth had not provided sufficient evidence beyond the risk of non-recovery if successful in the District Court proceeding to warrant a stay. The court emphasised that staying the enforcement would defeat the policy of the Act, which favours timely progress payments. Therefore, the court refused the application to stay the enforcement of the judgment with costs.
Orders
Orders of the court
The application is refused with costs.
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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