Warrane Design Construct Fit-Out Pty Ltd v Woonona Bulli RSL Memorial Club Ltd [2025] NSWSC 123

Warrane Design Construct Fit-Out Pty Ltd v Woonona Bulli RSL Memorial Club Ltd [2025] NSWSC 123

Because the Contractors Debts Act 1997 (NSW) statutorily assigned the obligation to pay $1,200,670.24 from the principal (Club) to the Sub-Contractor, the judgment entered in favour of the Builder overstates the sum payable by that amount; therefore, the judgment must be stayed to the extent of the assigned and paid debt, and related garnishee and attachment orders set aside.

Parties
Plaintiff/judgment Creditor: Warrane Design Construct Fit-Out Pty Ltd; Defendant/judgment Debtor: Woonona Bulli RSL Memorial Club Ltd
Jurisdiction
Australia
Judgment Date
27 February 2025
Procedural Posture
Procedural Ruling / Motion for Stay of Judgment and Related Orders
Outcome
Judgment stayed in part and related orders set aside. Portion of balance to be paid into Court pending further proceedings.
Legal Topics
Contractors Debts Act 1997 (nsw), Building and Construction Industry Security of Payment Act 1999 (nsw), Assignment of Debt, Stay of Judgment, Garnishee Order
Building and Construction Civil Procedure Contractors Debts Act 1997 (nsw) Building and Construction Industry Security of Payment Act 1999 (nsw) Assignment of Debt Stay of Judgment Garnishee Order

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Parties

Warrane Design Construct Fit-Out Pty Ltd

Plaintiff/judgment Creditor

Woonona Bulli RSL Memorial Club Ltd

Defendant/judgment Debtor

Procedural Posture

Procedural Ruling / Motion for Stay of Judgment and Related Orders

Legal Issues

  1. 1 Whether judgment obtained under Building and Construction Industry Security of Payment Act 1999 (NSW) should be stayed in view of statutory assignment of debts under the Contractors Debts Act 1997 (NSW)
  2. 2 Interplay and harmonious construction of the Security of Payment Act and Contractors Debts Act

Ratio Decidendi

Because the Contractors Debts Act 1997 (NSW) statutorily assigned the obligation to pay $1,200,670.24 from the principal (Club) to the Sub-Contractor, the judgment entered in favour of the Builder overstates the sum payable by that amount; therefore, the judgment must be stayed to the extent of the assigned and paid debt, and related garnishee and attachment orders set aside.

Court Disposition

Judgment stayed in part and related orders set aside. Portion of balance to be paid into Court pending further proceedings.

Orders

  • The judgment entered in favour of the plaintiff against the defendant on 3 February 2025 is stayed to the extent of $1,200,670.24.
  • The orders made and entered on 20 February 2025 attaching debts due from the Commonwealth Bank of Australia to the defendant for payment of $2,141,780.13 and the garnishee order are set aside.