Taylor Construction Group Pty Ltd v Adcon Structural Group Pty Ltd

Taylor Construction Group Pty Ltd and Adcon Structural Group Pty Ltd were involved in a dispute concerning a terminated construction contract. Adcon, a subcontractor, served a payment claim under the Security of Payment Act, which Taylor disputed by issuing a payment schedule. Adcon subsequently submitted another payment claim without withdrawing the first, prompting Taylor to assert that the initial claim was valid. The legal issues centred on whether Taylor could change its stance on the validity of the payment claim and whether this constituted an impermissible "approbation and repudiation." Additionally, the court examined whether Taylor's termination of the contract and subsequent repudiation could be considered distinguishable breaches, allowing Adcon to affirm the contract initially and then terminate it upon the second repudiation.

The court found that Taylor's changing position on the validity of the payment claim was impermissible and that section 13(1C) of the Security of Payment Act precluded Adcon's later payment claim. The court held that Taylor could not approbate and reprobate, and that Adcon's later payment claim was invalid. Regarding the contract's termination, the court determined that Taylor's second repudiation was not distinguishable from the initial breach, following the principles outlined in GEC Marconi v BHP. The court concluded that Adcon's election to affirm the contract upon the first repudiation prevented it from terminating the contract after the second repudiation.

As a result, the court ruled in favour of Taylor on both issues. The later payment claim was deemed invalid, and the contract remained effective despite Taylor's repudiation. The final orders of the court were that Adcon's second payment claim was invalid and that the construction contract between the parties remained in force.