John Goss Projects v Leighton Contractors & Anor [2006] NSWSC 798

John Goss Projects v Leighton Contractors & Anor [2006] NSWSC 798

The adjudicator's determination was void for denial of natural justice because he decided that prior obiter in Rothnere v Quasar was incorrect, forming part of his reasoning, without notifying the parties or inviting submissions on that point, which was not raised by either party, thus depriving John Goss of a fair opportunity to be heard; clause 45 of the contract was not void, as it did not conflict with the statutory timeframes but operated as a precondition to certain claims, not as a bar to the statutory entitlement to serve payment claims.

Parties
Plaintiff: John Goss Projects Pty Limited; First Defendant: Leighton Contractors Pty Limited; Second Defendant: Philip Davenport
Jurisdiction
Australia
Judgment Date
14 August 2006
Procedural Posture
Judicial Review/adjudication Challenge / Judgment After Hearing
Outcome
Partial success for plaintiff; adjudication determination declared void; other relief refused.
Legal Topics
Security of Payment, Natural Justice, Good Faith, Abuse of Process, Contractual Notice Clauses
Building and Construction Law Security of Payment Natural Justice Good Faith Abuse of Process Contractual Notice Clauses

Case Brief

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Parties

John Goss Projects Pty Limited

Plaintiff

Leighton Contractors Pty Limited

First Defendant

Philip Davenport

Second Defendant

Procedural Posture

Judicial Review/adjudication Challenge / Judgment After Hearing

Legal Issues

  1. 1 Whether the adjudicator denied natural justice in deciding on an unnotified ground
  2. 2 Whether the adjudicator failed to act in good faith
  3. 3 Whether clause 45 of the contract is void by operation of s 34 of the Building and Construction Industry Security of Payment Act 1999

Ratio Decidendi

The adjudicator's determination was void for denial of natural justice because he decided that prior obiter in Rothnere v Quasar was incorrect, forming part of his reasoning, without notifying the parties or inviting submissions on that point, which was not raised by either party, thus depriving John Goss of a fair opportunity to be heard; clause 45 of the contract was not void, as it did not conflict with the statutory timeframes but operated as a precondition to certain claims, not as a bar to the statutory entitlement to serve payment claims.

Court Disposition

Partial success for plaintiff; adjudication determination declared void; other relief refused.

Orders

  • Declare that the second defendant's determination on 3 July 2006 of the plaintiff's adjudication application dated 22 June 2006 is void.
  • Summons otherwise dismissed.