THE FLETCHER CONSTRUCTION COMPANY LTD v SPOTLESS FACILITY SERVICES (NZ) LTD [2020] NZHC 780

THE FLETCHER CONSTRUCTION COMPANY LTD v SPOTLESS FACILITY SERVICES (NZ) LTD [2020] NZHC 780

Pursuant to the Court's discretion under s 24A(2)(e) of the Construction Contracts Act 2002, interim relief was appropriate on a Pickwick basis and Spotless was ordered to lift its suspension upon FCC depositing $2,067,715.86 (excluding GST) with the agreed stakeholder to be held on interest-bearing deposit and...

Source-derived case information.

Citation
[2020] NZHC 780
Parties
Applicant: The Fletcher Construction Company Limited; Respondent: Spotless Facility Services (NZ) Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 April 2020
Procedural Posture
Application for Interim Relief Under Construction Contracts Act 2002 / Interim Hearing (pickwick Basis)
Outcome
Interim relief granted on Pickwick basis; suspension lifted subject to deposit of specified amount with stakeholder; leave reserved.
Legal Topics
Suspension of Payment, Payment Claim, Interim Relief, Stakeholder Deposit, Pickwick Order, Construction Contracts Act S 24 A(2)(e)
Construction Law Contract Law Civil Procedure Security for Payment Suspension of Payment Payment Claim Interim Relief Stakeholder Deposit +2 more

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Parties

The Fletcher Construction Company Limited

Applicant

Spotless Facility Services (NZ) Limited

Respondent

Procedural Posture

Application for Interim Relief Under Construction Contracts Act 2002 / Interim Hearing (pickwick Basis)

  1. 1 Whether the Court should order the respondent to lift its suspension of work subject to the applicant depositing the amount of payment claim 44 with a stakeholder
  2. 2 Whether interim relief on a Pickwick basis is appropriate pending further order

Ratio Decidendi

Pursuant to the Court's discretion under s 24A(2)(e) of the Construction Contracts Act 2002, interim relief was appropriate on a Pickwick basis and Spotless was ordered to lift its suspension upon FCC depositing $2,067,715.86 (excluding GST) with the agreed stakeholder to be held on interest-bearing deposit and disbursed in accordance with further order of the Court; leave to apply reserved.

Court Disposition

Interim relief granted on Pickwick basis; suspension lifted subject to deposit of specified amount with stakeholder; leave reserved.

Orders

  • Pursuant to s 24A(2)(e) Construction Contracts Act 2002, Spotless is ordered to lift its suspension on notification to Spotless that FCC has deposited the amount of payment claim 44 ($2,067,715.86 excluding GST) with an agreed stakeholder (Bell Gully), to be held on interest-bearing deposit and disbursed in...
  • Leave to apply reserved.