EnerMech Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd [2024] NSWCA 162

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: EnerMech Pty Ltd v Acciona Infrastructure Projects Australia Pty Ltd [2024] NSWCA 162 Hearing dates: 6 May 2024 Date of orders: 10 July 2024 Decision date: 10 July 2024 Before: Meagher JA at [1]; Basten AJA at [2]; Griffiths AJA at [89] Decision: (1) Allow the appeal from the judgment in the Equity Division given on 14 December 2023. (2) Set aside orders 1, 2 and 5 entered on 15 December 2023 and in their place order that: (a) the amended summons dated 24 October 2023 be dismissed; (b) the plaintiffs pay the costs of the first defendant of the summons; (c) the first defendant pay the plaintiffs' costs of the cross-summons. (3) Order that the first to third respondents pay the appellant an amount of $10,160,109.77, together with interest at 9.1% per annum from 7 July 2023 to the date of payment. (4) Order that the first to third respondents pay the appellant's costs in this Court. Catchwords: BUILDING AND CONSTRUCTION – payment claim – validity – claim for payment due under construction contract – whether claim must be "for construction work" – purpose of claim to recover an amount obtained by respondents through recourse to bank guarantees provided by claimant – defence asserted in payment schedule – whether issue to be determined by adjudicator or Court Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW), ss 3, 4, 7, 8, 9, 10, 12, 13, 14, 15, 16, 20, 22, 25, 27, 34 Supreme Court Act 1970 (NSW), s 69 Cases Cited: Brodyn Pty Ltd t/as Time Cost and Quality v Davenport & Anor (2004) 61 NSWLR 421; [2004] NSWCA 394 BSA Advanced Property Solutions (Fire) Pty Ltd v Ventia Australia Pty Ltd (2022) 108 NSWLR 350; [2022] NSWCA 82 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 Coordinated Construction Co Pty Ltd v J M Hargreaves (NSW) Pty Ltd (2005) 63 NSWLR 385; [2005] NSWCA 228 Grocon (Belgrave St) Developer Pty Ltd v Construction Profile Pty Ltd [2020] NSWSC 409 Illawarra Retirement Trust v Denham Constructions Pty Ltd [2015] NSWSC 823 Nepean Engineering Pty Ltd v Total Process Services Pty Ltd (in liq) (2005) 64 NSWLR 462; [2005] NSWCA 409 Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd (2018) 264 CLR 1; [2018] HCA 4 Quasar Constructions NSW Pty Ltd v Demtech Pty Ltd (2004) 20 BCL 276; [2004] NSWSC 116 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 Witron Australia Pty Ltd v Turnkey Innovative Engineering Pty Ltd [2023] NSWCA 305 Category: Principal judgment Parties: EnerMech Pty Ltd (Appellant) Acciona Infrastructure Projects Australia Pty Ltd (First Respondent) Samsung C&T Corporation (Second Respondent) Bouygues Construction Australia Pty Ltd (Third Respondent) Rosemarie Risgalla (Fourth Respondent) Representation: Counsel: M Christie SC / D Hume (Appellant) S Robertson SC / M Keene (First to Third Respondents)