Tianqi Lithium Kwinana Pty Ltd v MSP Engineering Pty Ltd [No 2]

Tianqi Lithium Kwinana Pty Ltd, as the principal, brought proceedings against MSP Engineering Pty Ltd, the contractor, seeking to recover liquidated damages for the delay in completion of a construction project. The dispute centred around whether the contractor was entitled to payment for certified payment claims and whether the proceedings should be stayed under section 8(1) of the Commercial Arbitration Act 2012 (WA). MSP Engineering applied for summary judgment on the payment claims, while Tianqi Lithium contended that the proceedings should be stayed due to the existence of an arbitration agreement.

The court had to determine whether the proceedings were in respect of a matter subject to an arbitration agreement and, if so, whether the primary court erred in refusing to stay the proceedings. The court also needed to interpret the arbitration clause in the contract to ascertain whether the claim for payment was capable of summary determination under the clause. The court examined whether the claim was an action to enforce payment due under the contract, as expressed in the arbitration clause, and whether such an action could be summarily determined.

The court held that the primary court did not err in refusing to stay the proceedings. The court found that the matter before the primary court was not solely about the enforcement of payment due under the contract but involved broader issues such as the validity of the certified payment claims and the applicability of liquidated damages. The court concluded that the claim was not capable of summary determination and that a triable issue was raised before the primary court. Consequently, the court dismissed the appeal and affirmed the primary court's decision.

The court made no orders regarding costs.