Runaway Bay Investments Pty Ltd as trustee for Runaway Bay Investments Unit Trust v GCB Constructions Pty Ltd

In the matter of Runaway Bay Investments Pty Ltd as trustee for the Runaway Bay Investments Unit Trust versus GCB Constructions Pty Ltd, the court was asked to determine whether a sum of $61,054.44, determined by an adjudicator to be payable to the builder, should be paid into court pending the outcome of a substantive application to declare the adjudicator's decision void. The dispute arose after the adjudicator found in favour of the builder and an Adjudication Certificate was obtained. However, no payment was made, and judgment was subsequently entered in the District Court. An application was filed to declare the adjudicator's decision void, and the first respondent sought an order that the disputed amount be paid into court pending the determination of the substantive application. The substantive application was scheduled to be heard on 15 February 2019. The applicant resisted the application, arguing it was unnecessary.

The primary legal issue before the court was whether an order should be made that the disputed amount be paid into court pending the substantive application. Additionally, the court needed to determine if the substantive application was analogous to a proceeding under section 31 of the Building and Construction Industry Payments Act 2004 (Qld). The court considered the necessity and appropriateness of paying the disputed amount into court, as well as the relevance of the Building and Construction Industry Payments Act 2004 (Qld) to the application. The court acknowledged the urgency of the matter and the potential impact on the builder's financial position.

The court found that an order should be made that the disputed amount be paid into court pending the outcome of the substantive application. The court reasoned that this would ensure that the builder's entitlement to the payment is not prejudiced while the substantive application is being heard. The court also determined that the substantive application was not analogous to a proceeding under section 31 of the Building and Construction Industry Payments Act 2004 (Qld), as the Act deals with payment disputes within the building and construction industry, whereas the present case involved a dispute over an adjudicator's decision. The court emphasised the importance of maintaining the separation of powers between adjudication and judicial review. The court will hear from the parties as to the form of the order and as to costs.