Grosvenor Constructions (NSW) Pty Limited (in administration) v Musico & Ors [2004] NSWSC 344

New South Wales Supreme Court

CITATION : Grosvenor Constructions (NSW) Pty Limited (in administration) v Musico & Ors [2004] NSWSC 344 HEARING DATE(S) : 27/04/04 JUDGMENT DATE : 27 April 2004

JURISDICTION: Equity Division Technology and Construction List JUDGMENT OF : Einstein J DECISION : Proper exercise of discretion is to order the stay of judgment debt on terms satisfying the Court that proceedings or alternative dispute [arbitral] resolution proceedings will be commenced by the plaintiff within a nominate period of time.

CATCHWORDS : Building and construction - Practice and procedure - Stay of judgment debt - Progress payments claimed under the Building and Construction Industry Security of Payment Act 1999 - Plaintiff obtains adjudication certificate pursuant to section 24 of Act and files adjudication certificate as a judgment for debt pursuant to section 25 of Act - Plaintiff placed under external administration-Defendants seek stay of proceedings - Evidence that defendants, if successful in final proceedings, would suffer irreparable prejudice as payment pursuant to the judgment debt could never be recouped - A failure to order the stay would in practice convert an amount which ought to be an interim payment into a final payment - Principles to be applied on application for stay of judgment debt - English authorities examined Building and Construction Industry Security of Payment Act 1999 (NSW) LEGISLATION CITED : Housing Grants, Construction and Regeneration Act 1996 (UK) Supreme Court Act 1970 (NSW) Absolute Rentals Ltd v Gencor Enterprises Ltd [2000] C.I.L.L. 1637 Advanced Building Systems Pty Ltd v Ramset Fasteners (Aust) Pty Ltd (1997) 71 ALJR 814 Alexander & Ors v Cambridge Credit Corporation Ltd (Receivers appointed) & Anor (1985) 2 NSWLR 685 Baldwins Industrial Services PLC v Barr Limited [2003] BLR 176 Brodyn Pty Ltd t/as Time Cost and Quality v Davenport [2003] NSWSC 1019 Hamilton v Oades (1989) 166 CLR 486 Herschel Engineering Ltd v Breen Property Ltd [2000] BLR 272 Jackson v Sterling Industries Limited (1987) 162 CLR 612 Kalifair Pty Ltd v Digi-Tech (Australia) Ltd; McLean Technic Pty Ltd v Digi-Tech (Aust) Ltd (2002) 55 NSWLR 737 CASES CITED : Macob Civil Engineering Ltd v Morrison Construction Limited (1999) 64 Con. LR 1 Musico v Davenport [2003] NSWSC 977 Parist Holdings Pty Ltd v WT Partnership Australia Pty Ltd [2003] NSWSC 365 Paynter Dixon Constructions Pty Ltd v JF & CG Tilston Pty Ltd [2003] NSWSC 869 Pegram Shopfitters Ltd v Tally Weijl (UK) Ltd [2004] BLR 65 Rainford House Ltd v Cadogan Ltd [2001] BLR 416 Reid v Howard (No 2) (1995) 184 CLR 1 RJT Consulting Engineers Ltd v DM Engineering Ltd (Northern Ireland) [2002] 1 WLR 2344 SL Timber Systems Ltd v Carillon [2001] ScotCS 167, [McFadyn LJ] TCN Channel 9 Pty Ltd v Antoniadis [No. 2] (1999) 48 NSWLR 381 Tringali v Stewardson Stubbs & Collett (1966) 66 SR (NSW) 335 Grosvenor Constructions (NSW) Pty Limited (in administration) (Plaintiff) Joseph Musico (First Defendant) PARTIES : Rosemary Musico (Second Defendant) Luigi Genua (Third Defendant) Rose Genua (Fourth Defendant) FILE NUMBER(S) : SC 55071/03 COUNSEL : Dr D Doyle (solicitor) Plaintiff Mr M Christie, Mr S Moffatt (Defendants) SOLICITORS : The Builders Lawyers (Plaintiff) White Barnes (Defendants)