Allianz Australia Insurance Ltd v Probuild Constructions (Aust) Pty Ltd [2022] NSWSC 1601

Supreme Court New South Wales

Medium Neutral Citation: Allianz Australia Insurance Ltd v Probuild Constructions (Aust) Pty Ltd [2022] NSWSC 1601 Hearing dates: 17 November 2022 Date of orders: 23 November 2022 Decision date: 23 November 2022 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Settlement Sum held not to be Surplus Bond Moneys for the purpose of the parties' Deed of Indemnity – proceedings to be dismissed Catchwords: CONTRACT – performance bonds – deed of indemnity relating to issue of performance bonds – proper construction of provision concerning surplus bond moneys – whether funds paid by principal to builder pursuant to deed of settlement comprise surplus bond moneys – whether trust provision in deed of indemnity enlivened – whether trust provisions created a security interest for the purposes of the Personal Property Securities Act 2009 (Cth) Legislation Cited: Building and Construction Industry Security of Payment Act 2002 (Vic) Personal Property Securities Act 2009 (Cth) Cases Cited: Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (in liq) (1978) 141 CLR 335; [1978] HCA 45 Cargill International SA & Anor v Bangladesh Sugar and Food Industries Corp [1996] 2 Lloyd's Rep 254; [1996] 4 All ER 563 Clough Engineering Ltd v Oil & Natural Gas Corporation Ltd (No 3) [2007] FCA 2082 Codelfa Construction Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337; [1982] HCA 24 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Hastie Group Limited (in liq) v Multiplex Constructions Pty Ltd (Formerly Brookfield Multiplex Constructions Pty Ltd) (No 3) [2022] FCA 1280 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Reardon Smith Line Ltd v Hansen-Tangen; Hansen-Tangen v Sanko Steamship Co [1976] 1 WLR 989; [1976] 3 All ER 570 Stiassny v North Shore City Council [2009] 1 NZLR 342; [2008] NZCA 522 The Good Living Company Pty Limited atf the Warren Duncan Trust No 3 v Kingsmede Pty Ltd [2019] FCA 2170 Uzinterimpex JSC v Standard Bank Plc [2007] 2 Lloyd's Rep 187; [2007] EWHC 1151 Texts Cited: N Dennys and R Clay (eds), Hudson's Building and Engineering Contracts (14th ed, 2020, Thomson Reuters) P Herzfeld and T Prince, Interpretation (2nd ed, 2020, Thomson Reuters) Category: Principal judgment Parties: Allianz Australia Insurance Limited (Plaintiff) Probuild Constructions (Aust) Pty Ltd (First Defendant) Salvatore Algeri (Second Defendant) Jason Mark Tracey (Third Defendant) Matthew James Donnelly (Fourth Defendant) David Michael Orr (Fifth Defendant) Representation: Counsel: C R C Newlinds SC with A Campbell (Plaintiff) H N G Austin KC with D Krochmalik (Defendants)