BBB Constructions Pty Ltd v Frankipile Australia Pty Ltd [2008] NSWSC 982

Reported Decision : 68 ACSR 1

New South Wales Supreme Court

CITATION : BBB Constructions Pty Ltd v Frankipile Australia Pty Ltd [2008] NSWSC 982

HEARING DATE(S) : 14 August 2008 JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Brereton J

EX TEMPORE JUDGMENT DATE : 14 August 2008

DECISION : Creditor's statutory demand set aside, no condition for payment is imposed.

CATCHWORDS : CORPORATIONS – creditor's statutory demand – application to set aside demand – where debt arose under (NSW) Building and Construction Industry Security of Payment Act 1999 – offsetting claim – where parties are head contractor and sub-contractor – test for determining whether there is a genuine offsetting claim – where plaintiff alleges that defendant is liable under contract for damage to neighbouring properties due to inadequate construction work – where preliminary expert evidence suggests that defendant may have caused the damage – whether the claim is bona fide and truly existing – whether plaintiff's financial position relevant to whether offsetting claim made in good faith – whether offsetting claim needs to be particularised as an exact amount – whether condition should be imposed that the plaintiff nonetheless pay into court the amount claimed by defendant on setting aside of statutory demand.

LEGISLATION CITED : (CTH) Corporations Act 2001, ss 459E, 459G, 459H (NSW) Building and Construction Industry Security of Payment Act 1999

CATEGORY : Principal judgment

Aldoga Aluminium Pty Ltd v De Silva Starr Pty Ltd [2005] NSWSC 284 Anderson Formrite Pty Ltd v Rapid Metal Development (Australia) Pty Ltd [2002] WASC 232 Chadwick Industries (South Coast) Pty Ltd v Condensing Vaporisers Pty Ltd (1994) 13 ACSR 37 Demir Pty Ltd v Graf Plumbing Pty Ltd [2004] NSWSC 553 Elm Financial Services Pty Ltd v MacDougal [2004] NSWSC 560 Get'm Pty Ltd v Triulcio [2004] NSWSC 291 CASES CITED : Greenaways Australia Pty Ltd v CBC Management Pty Ltd [2004] NSWSC 1186 Jesseron Holdings Pty Ltd v Middle East Trading Consultants Pty Ltd (No 2) (1994) 122 ALR 717; (1994) 12 ACLC 490 JJMMR Pty Ltd v LG International Corporation [2003] QCA 519 Macleay Nominees Pty Ltd v Belle Property East Pty Ltd [2001] NSWSC 743 Ozone Manufacturing Pty Ltd v Deputy Commissioner of Taxation [2006] SASC 91; (2006) 94 SASR 269 Scanhill Pty Ltd v Century 21 Australasia (1993) 47 FCR 451 Yoogalu Pty Ltd v Intentia Australia Pty Ltd [2006] NSWSC 278