St Hilliers Construction Pty Ltd v Fitzpatrick Investments Pty Ltd

In *St Hilliers Construction Pty Ltd v Fitzpatrick Investments Pty Ltd*, the New South Wales Court of Appeal considered a dispute arising from a building contract. The central issue concerned the plaintiff contractor's entitlement to a reduction in the bank guarantees provided as security for performance, and the defendant developer's obligation to return a portion of that security.

The court was required to determine whether the conditions stipulated in the contract for a reduction in the security had been satisfied. Specifically, the appeal concerned the interpretation of contractual clauses governing the reduction of performance security and the defendant's obligation to return a specific bank guarantee.

The Court of Appeal allowed the appeal, finding that the plaintiff was entitled to a reduction in the security provided. The court declared that, as at 21 March 2012, the defendant's entitlement to security was reduced to 50 per cent of the security provided. Consequently, the court ordered the defendant to return a specific bank guarantee and pay interest on the secured sum from that date. The defendant was also ordered to pay the plaintiff's costs of the proceeding and the appeal.