Redline Contracting Pty Ltd v MCC Mining (Western Australia) Pty Ltd (No 2) [2012] FCA 1

Redline Contracting Pty Ltd v MCC Mining (Western Australia) Pty Ltd (No 2) [2012] FCA 1

Redline failed to establish a prima facie case that cl 5.2 of the contract impliedly precluded MCC Mining from calling on the unconditional undertakings in respect of its claims for unliquidated damages, and there was no serious question to be tried that MCC Mining's conduct was unconscionable under s 51AA of the Trade Practices Act 1974 (Cth) or s 20 of the Australian Consumer Law.

Parties
Applicant: Redline Contracting Pty Ltd; Respondent: MCC Mining (Western Australia) Pty Ltd
Jurisdiction
Australia
Judgment Date
06 January 2012
Procedural Posture
Interlocutory Application / Judgment on Application for Interlocutory Injunction
Outcome
Application dismissed
Legal Topics
Construction Contracts, Performance Security, Injunctions, Unconscionable Conduct
Contract Law Construction Law Construction Contracts Performance Security Injunctions Unconscionable Conduct

Case Brief

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Parties

Redline Contracting Pty Ltd

Applicant

MCC Mining (Western Australia) Pty Ltd

Respondent

Procedural Posture

Interlocutory Application / Judgment on Application for Interlocutory Injunction

Legal Issues

  1. 1 Whether the contractor demonstrated a prima facie case that the principal is precluded from resorting to the security under the construction contract
  2. 2 Whether the principal's call on the unconditional undertakings was unconscionable in contravention of s 51AA Trade Practices Act 1974 (Cth), now s 20 Australian Consumer Law

Ratio Decidendi

Redline failed to establish a prima facie case that cl 5.2 of the contract impliedly precluded MCC Mining from calling on the unconditional undertakings in respect of its claims for unliquidated damages, and there was no serious question to be tried that MCC Mining's conduct was unconscionable under s 51AA of the Trade Practices Act 1974 (Cth) or s 20 of the Australian Consumer Law.

Court Disposition

Application dismissed

Orders

  • The orders made on 15 November 2011 are discharged.
  • The applicant's application dated 15 November 2011 is dismissed.