Demex Pty Ltd v McNab Building Services Pty Ltd [2023] NSWCA 261

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Demex Pty Ltd v McNab Building Services Pty Ltd [2023] NSWCA 261 Hearing dates: 12 May 2023 Date of orders: 2 November 2023 Decision date: 02 November 2023 Before: Mitchelmore JA at [1]; Kirk JA at [2]; Adamson JA at [105] Decision: (1) Appeal allowed with costs. (2) Set aside orders 1, 2 and 4 made by the Supreme Court on 25 October 2022 and in lieu thereof order as follows: (a) Prayers 4-8 of the summons are dismissed. (b) Plaintiff to pay the defendants' costs. Catchwords: ADMINISTRATIVE LAW — Procedural fairness — Whether the adjudicator afforded parties procedural fairness under the Building and Construction Industry Security of Payment Act 1999 (NSW) — Where necessary provision of procedural fairness attenuated in the context of the statute — Need for a substantial departure from the general requirements of procedural fairness ADMINISTRATIVE LAW — Procedural fairness — Where conversion factor from weight to volume that was applied was not explained in terms by claimant — Where conversion factor was readily calculable — Where party is aware that some conversion factor was applied — Whether reliance made on contractual document which had not been foreshadowed was a denial of procedural fairness — Whether reliance on industry standards not provided by either party was a denial of procedural fairness — No substantial denial of procedural fairness constituting jurisdictional error Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW), ss 3(4), 13, 14, 17(3)(c), 18, 20, 21(2), 21(3), 21(4), 22(2), 22(3)(b), 32 Building and Construction Industry Security of Payment Regulation 2020 (NSW), cl 19 Cases Cited: Ausenco Operations Pty Ltd v Ferretti International Ottoway Pty Ltd [2020] SASC 46 Brodyn Pty Ltd v Davenport (2004) 61 NSWLR 421; [2004] NSWCA 394 Broken Hill Cobalt Project Pty Ltd v Lord (2022) 254 LGERA 274; [2022] NSWCA 271 Brolton Group Pty Ltd v Hanson Construction Materials Pty Ltd [2020] NSWCA 63 BSA Advanced Property Solutions (Fire) Pty Ltd v Ventia Australia Pty Ltd (2022) 108 NSWLR 350; [2022] NSWCA 82 Cardinal Project Services Pty Ltd v Hanave Pty Ltd (2011) 81 NSWLR 716; [2011] NSWCA 399 Ceerose Pty Ltd v A-Civil Aust Pty Ltd (2023) 112 NSWLR 225; [2023] NSWCA 215 Chase Oyster Bar Pty Ltd v Hamo Industries Pty Ltd (2010) 78 NSWLR 393; [2010] NSWCA 190 Commissioner for ACT Revenue v Alphaone (1994) 49 FCR 576 Downer Construction (Aust) Pty Ltd v Energy Australia (2007) 69 NSWLR 72; [2007] NSWCA 49 Grocon Constructors Pty Ltd v Planit Cocciardi Joint Venture (No 2) (2009) 26 VR 172; [2009] VSC 426 Kioa v West (1985) 159 CLR 550, [1985] HCA 81 Media Niugini Ltd (t/as EMTV) v International Management Group of America Pty Ltd [2023] NSWCA 33 Minister for Immigration and Border Protection v SZSSJ (2016) 259 CLR 180; [2016] HCA 29 Musico v Davenport [2003] NSWSC 977 MZAPC v Minister for Immigration and Border Protection (2021) 273 CLR 506; [2021] HCA 17 Northbuild Construction Pty Ltd v Central Interior Linings Pty Ltd [2012] 1 Qd R 525; [2011] QCA 22 Plaintiff S10/2011 v Minister for Immigration and Citizenship (2012) 246 CLR 636; [2012] HCA 31 Probuild Constructions (Aust) Pty Ltd v DDI Group Pty Ltd (2017) 95 NSWLR 82; [2017] NSWCA 151 Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd (2018) 264 CLR 1; [2018] HCA 4 Re Association of Architects of Australia; Ex parte Municipal Officers Association of Australia (1989) 63 ALJR 298; [1989] HCA 13 Re Refugee Tribunal; Ex parte Aala (2000) 204 CLR 82; [2000] HCA 57 Shade Systems Pty Ltd v Probuild Constructions (Aust) Pty Ltd (No 2) (2016) 95 NSWLR 157; [2016] NSWCA 379 Stowers v Minister for Immigration and Border Protection (2018) 265 FCR 177; [2018] FCAFC 174 SZBEL v Minister for Immigration and Multicultural and Indigenous Affairs (2006) 228 CLR 152; [2006] HCA 63 Texts Cited: NSW Legislative Assembly, Parliamentary Debates (Hansard), 12 November 2002 at 6542 Category: Principal judgment Parties: Demex Pty Ltd (Appellant) McNab Building Services Pty Ltd (First Respondent) Chris Thompson (Second Respondent) Representation: Advocates: M Christie SC with J Hastie and D Ward (Appellant) F Hicks SC with D Byrne (First Respondent)