The New South Wales Netball Association Ltd (ACN 001 685 007) v Probuild Constructions (Aust) Pty Ltd (ACN 095 250 945)

The dispute in this case arose between the New South Wales Netball Association Ltd and Probuild Constructions (Aust) Pty Ltd. The netball association sought an interlocutory injunction to prevent Probuild from enforcing a determination made by an adjudication process. This determination had found that the association was liable for certain payments made under a construction contract. The association argued that it was prejudiced by the statutory timetable governing the adjudication process, which it claimed prevented it from adequately responding to the payment claim.

The primary legal issues before the court were whether the association had established that it was arguable that the payment claim referred to as a “draft” was not a valid payment claim, and whether the association had demonstrated that it would suffer significant prejudice if the injunction was not granted. The association argued that the draft nature of the claim meant it was not a valid payment claim under the applicable legislation. The court had to consider whether this argument was arguable and whether it had merit. Additionally, the court needed to determine whether the association would suffer significant prejudice if it were forced to pay the adjudicated amount before the substantive proceedings were resolved.

The court found that the association had established that it was arguable that the payment claim referred to as a “draft” was not a valid payment claim. The court considered that the use of the term “draft” indicated that the claim was not final and may not have complied with the statutory requirements. The court also found that the association had demonstrated that it would suffer significant prejudice if the injunction was not granted. The association argued that it would be forced to pay the adjudicated amount and incur legal costs, which would prejudice its position in the substantive proceedings. The court accepted this argument, concluding that the association had shown a sufficient likelihood of success on the merits and that the balance of convenience favoured granting the injunction. Consequently, the court granted the injunction, restraining Probuild from enforcing the adjudication determination until the substantive proceedings were resolved.

The final orders of the court included granting the association an interlocutory injunction restraining Probuild from enforcing the adjudication determination and restraining the enforcement of any payment arising from the adjudication. The injunction was to remain in place until the substantive proceedings were concluded or further order of the court.