Watkins Contracting Pty Ltd v Hyatt Ground Engineering Pty Ltd

The matter of Watkins Contracting Pty Ltd v Hyatt Ground Engineering Pty Ltd involved a dispute between the applicant, Watkins, and the first respondent, Hyatt, over a construction contract. Watkins alleged it terminated the contract for Hyatt’s breach due to an onsite incident. Hyatt denied the termination and served a payment claim under the Building and Construction Industry Payments Act 2004. The adjudicator found in Hyatt's favour, which Watkins contested on the basis that the adjudicator refused to consider its submission that the construction contract had been terminated, and that the adjudicator made his decision on a basis not raised by either party, amounting to a denial of natural justice.

The legal issues before the court were whether the adjudicator made a jurisdictional error or denied natural justice by failing to consider Watkins' submission that the construction contract had been terminated, and by making his decision on a basis not raised by either party. The court considered whether the adjudicator's decision could be invalidated on the grounds of a substantial denial of natural justice. The adjudicator had acknowledged the jurisdictional issues, and had noted that Watkins had raised matters in the adjudication response that were not raised in the payment schedule. The court found that the adjudicator correctly determined that the new reasons could not be raised in the adjudication response and that these reasons would not be taken into account in his decision.

In conclusion, the court held that the adjudicator's decision was not invalidated by a substantial denial of natural justice. The court dismissed Watkins' application, ordered that Watkins pay the costs of the first respondent, and requested submissions within 7 days as to any orders required in relation to the security for costs.