Quickway Constructions Pty Ltd v Electrical Energy Pty Ltd [2017] NSWSC 1140

Quickway Constructions Pty Ltd v Electrical Energy Pty Ltd [2017] NSWSC 1140

The assignment of Electrical's contractual entitlements to Bibby did not prevent Electrical from serving payment claims or pursuing adjudication under the BCISPA because the Act creates a statutory entitlement in the contractor who undertook to carry out the construction work, and Electrical's statutory rights before crystallisation into a debt were personal and not assigned by the invoice notation. However, the Leichhardt adjudication determination involved a denial of natural justice because the adjudicator determined the application on the basis of a 31 March 2017 reference date when Electrical had identified 28 April 2017 as the relevant reference date and Quickway had expressly...

Jurisdiction
Australia
Judgment Date
31 August 2017
Procedural Posture
Equity Proceedings Challenging Two Adjudication Determinations Under the Building and Construction Industry Security of Payment Act 1999 (nsw) / Principal Judgment After Hearing
Outcome
Quickway's challenge to the two adjudication determinations based on assignment failed; Quickway's challenge to the Leichhardt adjudication determination based on denial of natural justice succeeded; consequential orders were left for the parties to formulate.
Legal Topics
['security of Payment' 'construction Contracts' 'progress Payments' 'assignment of Debts' 'payment Claims' 'adjudication Determinations' 'natural Justice' 'reference Date']
['building and Construction' 'equity'] ['security of Payment' 'construction Contracts' 'progress Payments' 'assignment of Debts' 'payment Claims' 'adjudication Determinations' 'natural Justice' 'reference Date']

Case Brief

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Procedural Posture

Equity Proceedings Challenging Two Adjudication Determinations Under the Building and Construction Industry Security of Payment Act 1999 (nsw) / Principal Judgment After Hearing

Legal Issues

  1. 1 ["Whether assignment of Electrical Energy Pty Ltd's payment entitlements to Bibby meant the invoices were not payment claims and the Building and Construction Industry Security of Payment Act 1999 (NSW) procedure was unavailable to Electrical Energy Pty Ltd." 'Whether the adjudicator denied Quickway natural justice in the Leichhardt adjudication by determining the application on the basis of a 31 March 2017 reference date rather than the reference date addressed by Quickway.']

Ratio Decidendi

The assignment of Electrical's contractual entitlements to Bibby did not prevent Electrical from serving payment claims or pursuing adjudication under the BCISPA because the Act creates a statutory entitlement in the contractor who undertook to carry out the construction work, and Electrical's statutory rights before crystallisation into a debt were personal and not assigned by the invoice notation. However, the Leichhardt adjudication determination involved a denial of natural justice because the adjudicator determined the application on the basis of a 31 March 2017 reference date when Electrical had identified 28 April 2017 as the relevant reference date and Quickway had expressly...

Court Disposition

Quickway's challenge to the two adjudication determinations based on assignment failed; Quickway's challenge to the Leichhardt adjudication determination based on denial of natural justice succeeded; consequential orders were left for the parties to formulate.

Orders

  • ['Order that the interlocutory injunction granted on 7 August 2017 be discharged.' 'Direct that within 28 days the plaintiff bring in orders giving effect to the conclusions I have reached in this judgment, or arrange with my Associate for the proceedings to be listed for argument on the proper form of such orders.']