The Trustees of the Roman Catholic Church for the Diocese of Lismore v T F Woollam and Son

The Trustees of the Roman Catholic Church for the Diocese of Lismore brought proceedings against T F Woollam and Son, seeking a declaration regarding the payment claim under the Building and Construction Industry Security of Payment Act 1999 (NSW). The dispute arose from a building contract between the parties, where the respondent, the builder, sought payment for work completed under the contract. The applicant, the principal, challenged the validity of the payment claim, asserting it did not comply with the statutory requirements, specifically sections 13(4) and (5) of the Act. The case was heard in the Supreme Court of New South Wales, which was required to determine whether the adjudicator's decision was affected by a jurisdictional error.

The primary legal issue before the court was whether the adjudicator had acted outside their jurisdiction by accepting and relying on the payment claim, which the applicant argued did not comply with the statutory requirements. Specifically, the court had to consider whether the failure to comply with sections 13(4) and (5) of the Act was a jurisdictional error, and whether compliance with section 13(5) was a jurisdictional requirement. The applicant contended that the adjudicator was not empowered to make a decision on an invalid payment claim, while the builder argued that the adjudicator's decision should be upheld as it was within their jurisdiction to consider the claim despite any perceived defects.

The court found that the adjudicator did not act outside their jurisdiction by accepting the payment claim, as the alleged defects did not affect the adjudicator's power to make a decision. The court held that the failure to comply with sections 13(4) and (5) of the Act did not constitute a jurisdictional error, and compliance with section 13(5) was not a jurisdictional requirement. The court emphasised that the adjudicator's role was to make a decision on the merits of the claim, and the statutory provisions were not intended to limit the adjudicator's jurisdiction. Consequently, the court dismissed the applicant's claim and upheld the adjudicator's decision.

The Supreme Court of New South Wales made a declaration that the adjudicator's decision was valid and binding on the parties. The court also ordered the applicant to pay the respondent's costs of the proceedings, including the costs of the adjudicator's decision. This decision highlights the importance of ensuring compliance with the statutory requirements for payment claims under the Building and Construction Industry Security of Payment Act 1999 (NSW), while also affirming the broad jurisdiction of adjudicators in making decisions on such claims.