Goodwin Street Developments Pty Ltd v DSD Builders Pty Ltd [2018] NSWSC 1229

Supreme Court New South Wales

Medium Neutral Citation: Goodwin Street Developments Pty Ltd v DSD Builders Pty Ltd [2018] NSWSC 1229 Hearing dates: 06/08/2018 Date of orders: 06 August 2018 Decision date: 06 August 2018 Jurisdiction: Equity - Technology and Construction List Before: McDougall J Decision: Summons dismissed with costs. Money in court to be paid out to first defendant. Catchwords: BUILDING AND CONSTRUCTION – application to quash adjudicator's determination under Security of Payment Act – whether payment claim invalid as attachment to supporting statement not included – no requirement for such attachment on the facts of this case.

BUILDING AND CONSTRUCTION – whether adjudicator failed to discharge her statutory functions in good faith – statutory formulation requires certain specified matters be given weight as fundamental elements in the determination – necessary to consider adjudicators' reasoning in light of the compressed time constraints in which they are created – importance of not overzealously or mechanically applying the description of the adjudicators' task explained in SSC Plenty Road v Construction Engineering (Aust) [2015] VSC 631 – fair reading of the adjudicator's reasons in context demonstrates no jurisdictional error.

BUILDING AND CONSTRUCTION – whether builder should be prevented from receiving adjudicated amount – where owner claims to have a substantial offsetting claim – whether owner would be prejudiced if payment out of court is ordered due to insolvency risk of builder – where Security of Payment Act effects a statutory transfer of risk from builder to owner pending final determination – necessary to point to a further risk than that inherent in the statutory allocation to justify the granting of a stay – no such grounds established. Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW) Building and Construction Industry Security of Payment Regulation 2008 (NSW) Cases Cited: Chase Oyster Bar Pty Ltd v Hamo Industries Pty Ltd (2010) 78 NSWLR 393 John Holland Pty Ltd v Roads and Traffic Authority of New South Wales (2007) 23 BCL 205 Laing O'Rourke Australia Construction Pty Ltd v H&M Engineering and Construction Pty Ltd [2010] NSWSC 818 Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd (2018) 92 ALJR 248 R J Neller Building Pty Ltd v Ainsworth [2009] 1 Qd R 390 Shade Systems Pty Ltd v Probuild Constructions (Aust) Pty Ltd [2018] NSWCA 33 Southern Cross Electrical Engineering v Steve Magill Earthmoving [2018] NSWSC 1027 SSC Plenty Road Pty Ltd v Construction Engineering (Aust) Pty Ltd [2015] VSC 631 Suprima Bakeries Pty Ltd v Australian Weighing Equipment Pty Ltd [2016] NSWSC 998 Zhang v Canterbury City Council (2001) 51 NSWLR 589 Category: Principal judgment Parties: Goodwin Street Developments Pty Ltd as trustee for Jesmond Unit Trust (Plaintiff) DSD Builders Pty Ltd (First Defendant) Australian Building & Construction Dispute Resolution Service Pty Ltd (Second Defendant) Jennifer Wyatt (Third Defendant) Representation: Counsel: D S Weinberger (Plaintiff) B A Jacobs (First Defendant)