Sky General Services Pty Ltd v Bauen Constructions Pty Ltd

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Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Sky General Services Pty Ltd V Bauen Constructions Pty Ltd [2013] NSWCA 191
Hearing dates:19 June 2013
Decision date: 19 June 2013
Before: Barrett JA (at [1] and [18]); Gleeson JA (at [17])
Decision:

Application for leave to appeal dismissed with costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: APPEAL - application for leave to appeal - no challenge to substantive result - contention that wrong conclusion reached on two of three alternative bases of determination - challenge to costs order only
Legislation Cited: Building and Construction Industry Security of Payment Act 1999, ss 13(4), 17(2)
Cases Cited: Chase Oyster Bar Pty Ltd v Hamo Pty Ltd [2010] NSWCA 190; (2010) 78 NSWLR 393
House v The King [1936] HCA 40; (1936) 55 CLR 499
Marshall v Prescott [2013] NSWCA 152
Category:Interlocutory applications
Parties: Sky General Services Pty Ltd - Appellant
Bauen Constructions Pty Ltd - Respondent
Representation: Mr A T Lynch - Applicant
Mr D S Weinberger - Respondent
Lexi Fori Lawyers - Applicant
McCabes Lawyers Pty Ltd - Respondent
File Number(s):2012/354707
 Decision under appeal 
Citation:
[2012] NSWSC 1123
Date of Decision:
2012-09-18 00:00:00
Before:
Sackar J
File Number(s):
2012/230241

Judgment

  1. BARRETT JA: This application for leave to appeal arises from a decision of Sackar J in the Equity Division of the Supreme Court, in proceedings in which Bauen Constructions Pty Ltd sought relief against Sky General Services Pty Ltd in respect of certain adjudications under the Building and Construction Industry Security of Payment Act 1999.

  1. Sackar J decided that an adjudicator acting under that Act had fallen into jurisdictional error in three respects.

  1. His Honour's first finding of error concerned the construction of s 13(4) of the Act and the calculation of the time period under that section.

  1. The second finding concerned misdirection of the adjudicator of himself as to the correct statutory test under s 13(4), with the result that the adjudication was void.

  1. Third, the judge dealt with an argument that there had been denial of procedural fairness because the adjudicator had failed to consider Bauen's adjudication response. That argument was upheld.

  1. For each of three separate and independently articulated reasons advanced as alternatives, the judge ordered that the adjudicator's determinations be quashed, thereby granting the relief that Bauen had sought. In addition, the judge ordered that Sky pay Bauen's costs.

  1. The case that Sky wishes to pursue in the Court of Appeal relates in a real sense to the costs order only. Sky notes that the judge dealt with the substantive matter on the three alternative bases…

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Details
Case
[2013] NSWCA 191
Decision Date

CaseChat Overview and Summary

Sky General Services Pty Ltd sought leave to appeal a decision of the primary judge concerning a dispute with Bauen Constructions Pty Ltd. The application for leave to appeal did not challenge the substantive outcome of the primary judge's decision. Instead, the appellant contended that the primary judge had reached the wrong conclusion on two of the three alternative bases upon which the decision was founded. The sole focus of the appeal was therefore a challenge to the costs order made by the primary judge.

The Court of Appeal was required to determine whether leave to appeal should be granted, given that the substantive findings of the primary judge were not being contested. The central question was whether there was a sufficient basis to grant leave to appeal, even in the absence of a challenge to the core findings of liability or quantum, and with the appeal being confined to the issue of costs.

Barrett and Gleeson JJA dismissed the application for leave to appeal with costs. The Court's reasoning, though not detailed in the provided text, implicitly found that the appellant had not demonstrated a sufficient likelihood of success on appeal, or any other compelling reason, to warrant the granting of leave. The focus on the costs order alone, without challenging the underlying substantive findings, likely meant the appellant faced a high threshold to persuade the Court of Appeal to intervene. The Court's decision underscores the general principle that leave to appeal is not granted lightly, particularly when the substantive merits of the case are not in dispute.

Orders

Orders of the court

Application for leave to appeal dismissed with costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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