Taylor Construction Group Pty Ltd v Adcon Structural Group Pty Ltd [2023] NSWSC 723

Taylor Construction Group Pty Ltd v Adcon Structural Group Pty Ltd [2023] NSWSC 723

Taylor's 4 April 2023 letter was a further repudiatory breach, temporally distinguishable from the 24 March 2023 purported termination, which Adcon validly accepted on 11 April 2023 so that the contracts were terminated. Adcon then served valid April 2023 payment claims after termination and did not withdraw them. Section 13(1C) therefore precluded the later May 2023 payment claims, and Taylor's earlier assertion that the April claims were invalid did not create a discretion or prevent the operation of the section.

Jurisdiction
Australia
Judgment Date
27 June 2023
Procedural Posture
Equity Technology and Construction List; Application for Permanent Injunction and Declaratory Relief / Principal Judgment
Outcome
Permanent injunction and declaratory relief granted; defendant ordered to pay the plaintiff's costs.
Legal Topics
['building and Construction Industry Security of Payment Act 1999 (nsw) S 13(1 C)' 'payment Claims After Termination' 'repudiation and Affirmation of Contract' 'approbation and Reprobation' 'permanent Injunction']
['building and Construction' 'security of Payment' 'contract Law' 'equity'] ['building and Construction Industry Security of Payment Act 1999 (nsw) S 13(1 C)' 'payment Claims After Termination' 'repudiation and Affirmation of Contract' 'approbation and Reprobation' 'permanent Injunction']

Case Brief

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Procedural Posture

Equity Technology and Construction List; Application for Permanent Injunction and Declaratory Relief / Principal Judgment

Legal Issues

  1. 1 ['Whether the construction contracts were terminated before the May 2023 payment claims.' 'Whether Adcon was entitled to serve further payment claims after serving valid April 2023 payment claims following termination.' 'Whether Taylor was precluded from relying on the validity of the April 2023 payment claims because its payment schedules had asserted invalidity.']

Ratio Decidendi

Taylor's 4 April 2023 letter was a further repudiatory breach, temporally distinguishable from the 24 March 2023 purported termination, which Adcon validly accepted on 11 April 2023 so that the contracts were terminated. Adcon then served valid April 2023 payment claims after termination and did not withdraw them. Section 13(1C) therefore precluded the later May 2023 payment claims, and Taylor's earlier assertion that the April claims were invalid did not create a discretion or prevent the operation of the section.

Court Disposition

Permanent injunction and declaratory relief granted; defendant ordered to pay the plaintiff's costs.

Orders

  • ['Order that the defendant be permanently restrained from making any adjudication application under the Building and Construction Industry Security of Payment Act 1999 (the Act) in respect of the document dated 31 May 2023 served by the defendant on the plaintiff which purports to be a payment claim made under the...