Siemens Ltd v Origin Energy Uranquinty Power Pty Ltd [2011] NSWSC 195

Siemens Ltd v Origin Energy Uranquinty Power Pty Ltd [2011] NSWSC 195

The dispute fell within the broad contractual definition of a Dispute and within the amended referral of disputes arising before 20 December 2010, so the parties had agreed to arbitrate it. However, a claim under s 15(2)(a)(i) of the SOP Act is not arbitrable because it is part of the statutory mechanism for recovery of progress payments, the Act gives the claimant a right to sue in a court of competent jurisdiction, and s 34 makes void an arbitration provision to the extent it prevents exercise of that right. A discretionary stay or referral would undermine Siemens' statutory right and introduce complications and delay contrary to the SOP Act, and the overlap with arbitral issues did not...

Jurisdiction
Australia
Judgment Date
23 March 2011
Procedural Posture
Application by the Defendant for a Stay of Proceedings Under S 8 of the Commercial Arbitration Act 2010, Alternatively Under S 67 of the Civil Procedure Act 2005 or the Court's Inherent Jurisdiction, and Alternatively for Referral Under UCPR Rule 20.14 / Defendant's Motion Filed on 17 February 2011
Outcome
Defendant's motion filed on 17 February 2011 dismissed with costs.
Legal Topics
['arbitration Agreement' 'arbitrability' 'stay of Proceedings' 'building and Construction Industry Security of Payment Act 1999' 'progress Payment Claims' 'statutory Debt Under S 15(2)(a)(i)']
['arbitration' 'building and Construction Contracts' 'civil Procedure'] ['arbitration Agreement' 'arbitrability' 'stay of Proceedings' 'building and Construction Industry Security of Payment Act 1999' 'progress Payment Claims' 'statutory Debt Under S 15(2)(a)(i)']

Case Brief

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Procedural Posture

Application by the Defendant for a Stay of Proceedings Under S 8 of the Commercial Arbitration Act 2010, Alternatively Under S 67 of the Civil Procedure Act 2005 or the Court's Inherent Jurisdiction, and Alternatively for Referral Under UCPR Rule 20.14 / Defendant's Motion Filed on 17 February 2011

Legal Issues

  1. 1 ['Whether the parties agreed to refer the dispute arising under s 15(2)(a)(i) of the SOP Act to arbitration.' 'Whether a dispute under s 15(2)(a)(i) of the SOP Act is arbitrable.' "Whether the proceedings should nonetheless be stayed under s 67 of the Civil Procedure Act 2005 or in the court's inherent jurisdiction." 'Whether the matter should be referred to the arbitrators under UCPR rule 20.14.']

Ratio Decidendi

The dispute fell within the broad contractual definition of a Dispute and within the amended referral of disputes arising before 20 December 2010, so the parties had agreed to arbitrate it. However, a claim under s 15(2)(a)(i) of the SOP Act is not arbitrable because it is part of the statutory mechanism for recovery of progress payments, the Act gives the claimant a right to sue in a court of competent jurisdiction, and s 34 makes void an arbitration provision to the extent it prevents exercise of that right. A discretionary stay or referral would undermine Siemens' statutory right and introduce complications and delay contrary to the SOP Act, and the overlap with arbitral issues did not...

Court Disposition

Defendant's motion filed on 17 February 2011 dismissed with costs.

Orders

  • ["Origin's motion filed on 17 February 2011 should be dismissed with costs."]