TFM Epping Land Pty Ltd v Decon Australia Pty Ltd

The case of TFM Epping Land Pty Ltd v Decon Australia Pty Ltd concerned a dispute over a progress payment claim made under the *Building and Construction Industry Security of Payment Act 1999* (NSW). TFM Epping Land Pty Ltd (the applicant) sought to appeal a judgment of the Equity Division concerning the validity of a payment claim made by Decon Australia Pty Ltd (the respondent).

The primary legal issues before the Court of Appeal were whether the respondent's payment claim was invalid due to the inclusion of interest that accrued after the reference date, and whether the claim was rendered invalid by a failure to serve a compliant supporting statement. The court also considered whether a payment claim could be invalid if it included amounts not strictly owing under the contract, such as sums claimed on a quantum meruit basis, within the context of the statutory adjudication scheme.

The Court of Appeal, in dismissing the appeal, applied principles of statutory interpretation to the *Building and Construction Industry Security of Payment Act 1999*. It held that the inclusion of interest accruing after the reference date did not invalidate the claim, as the Act permitted claims to include amounts that would become due and payable after the reference date. Furthermore, the court found that while a compliant supporting statement is a prerequisite for a valid claim, a minor defect in the supporting statement, such as the inclusion of a small amount of interest, did not necessarily render the entire claim invalid, particularly where the overarching purpose of the Act was to facilitate progress payments. The court also affirmed that claims could include amounts not strictly owing under the contract, provided they were otherwise validly made under the Act.

The appeal was dismissed, with the applicants ordered to pay the respondent's costs.