West Tankers Pty Ltd v Scottish Pacific Business Finance Limited [2017] NSWSC 621

Supreme Court New South Wales

Medium Neutral Citation: West Tankers Pty Ltd v Scottish Pacific Business Finance Limited [2017] NSWSC 621 Hearing dates: 20 April 2017 Decision date: 19 May 2017 Jurisdiction: Equity - Commercial List Before: Hammerschlag J Decision: The monies standing in the District Court are forthwith to be paid out to Scottish Pacific Business Finance Limited. Catchwords: BUILDING AND CONSTRUCTION – Building and Construction Industry Security of Payment Act 1999 (NSW) (the SoP Act) – ss26A, 26B, 26C and 34 – Contractors Debts Act 1997 (NSW) (CD Act) – ss 5, 6, 7, 8, 9(1) and 11(1) – Ealwin owed the plaintiff money for goods supplied – a third party joint venture owed Ealwin money for goods supplied – the plaintiff served a payment withholding request under s 26A of the SoP Act on the joint venture (as principal contractor) – Ealwin had assigned the debt owed to it by the principal contractor to the defendant (or its predecessor) – the plaintiff obtained an adjudication determination and a debt certificate for its claim against Ealwin and then served a notice of claim on the joint venture under s 6 of the CD Act – s 8(1) of the CD Act provides that service of a notice of claim on the principal operates to assign to the unpaid person (here West Tankers) the obligation to pay the money owed under the contract to the defaulting contractor (here Ealwin) – both the plaintiff and the defendant claimed the money originally owed by the joint venture to Ealwin which the joint venture paid into Court to abide the outcome of the contest – HELD: the defendant's legal assignment prevailed and it was entitled to the money in Court. Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW) Contractors Debts Act 1997 (NSW) Conveyancing Act 1919 (NSW) Cases Cited: NSW Land and Housing Corporation v DJ's Home and Property Maintenance Pty Ltd (in liquidation) [2013] NSWSC 1167 Category: Principal judgment Parties: West Tankers Pty Ltd - Plaintiff Scottish Pacific Business Finance Pty Limited - Defendant Representation: Counsel: F.P. Hicks – Plaintiff J. Glover - Defendant