Acciona Infrastructure Projects Australia Pty Ltd v EnerMech Pty Ltd [2023] NSWSC 1565

Supreme Court New South Wales

Medium Neutral Citation: Acciona Infrastructure Projects Australia Pty Ltd v EnerMech Pty Ltd [2023] NSWSC 1565 Hearing dates: 28 and 29 November 2023; further written submissions 8, 12 and 13 December 2023 Decision date: 14 December 2023 Jurisdiction: Equity - Technology and Construction List Before: Stevenson J Decision: Determination made without jurisdiction and liable to be quashed; recourse to security and unpaid monies provisions in construction contract not void by reason of s 34 of the Building and Construction Industry Security of Payment Act 1999 (NSW); money paid into Court be paid out to plaintiffs Catchwords: BUILDING AND CONSTRUCTION – adjudication – judicial review – whether purported payment claim and adjudication determination under Building and Construction Industry Security of Payment Act 1999 (NSW) affected by jurisdictional error – where call on security by principal – where contractor procured unconditional bank guarantee – where purported payment claim and adjudication application by contractor took into account amount received by principal following call on security BUILDING AND CONSTRUCTION – contract – whether provisions in contract concerning recourse to security and unpaid monies void by reason of s 34 of Building and Construction Industry Security of Payment Act 1999 (NSW) – where provisions authorised plaintiffs to have recourse to security and unpaid monies CIVIL PROCEDURE – separate questions – determination of separate questions Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW) Cases Cited: Airservices Australia v Ferrier (1996) 185 CLR 483; [1996] HCA 54 Duro Felguera Australia Pty Ltd v Samsung C&T Corporation [2016] WASC 119 Fabtech Australia Pty Ltd v Laing O'Rourke Australia Construction Pty Ltd [2015] FCA 1371 Grocon (Belgrave St) Developer Pty Ltd v Construction Profile Pty Ltd [2020] NSWSC 409 Icon Co (NSW) Pty Ltd v Australia Avenue Developments Pty Ltd [2018] NSWCA 339 Illawarra Retirement Trust v Denham Constructions Pty Ltd [2015] NSWSC 823 John Holland Pty Ltd v Roads and Traffic Authority of New South Wales [2007] NSWCA 140 Langley v Foster (1906) 4 CLR 167; [1906] HCA 28 Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd [2023] HCA 6 Patterson Building Group Pty Ltd v Holroyd City Council [2013] NSWSC 1484 Sopov v Kane Constructions Pty Ltd (No 2) (2009) 24 VR 510; [2009] VSCA 141 Southern Han Breakfast Point Pty Ltd (in liq) v Lewence Construction Pty Ltd (2016) 260 CLR 340; [2016] HCA 52 VCON Pty Ltd v Oliver Hume Property Funds (Royal Parade) Parkville Pty Ltd [2020] VSC 767 Texts Cited: J W Carter, The Construction of Commercial Contracts (2013, Hart Publishing) K Lewison and D Hughes, The Interpretation of Contracts in Australia (2012, Thomson Reuters) P Herzfeld and T Prince, Interpretation (2nd ed, 2020, Thomson Reuters) Category: Principal judgment Parties: Acciona Infrastructure Projects Australia Pty Ltd (First Plaintiff/Cross-Defendant) Samsung C&T Corporation (Second Plaintiff/Cross-Defendant) Bouygues Construction Australia Pty Ltd (Third Plaintiff/Cross-Defendant) EnerMech Pty Ltd (First Defendant/Cross-Claimant) Rosemarie Risgalla (Second Defendant) Representation: Counsel: S Robertson SC with M T Keene (Plaintiffs/Cross-Defendants) D A Hughes (Defendants/Cross-Claimant)