Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd [2019] NSWCA 60

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd [2019] NSWCA 60 Hearing dates: 4 March 2019 Decision date: 29 March 2019 Before: Bell P at [1]; White JA at [83]; Sackville AJA at [98] Decision: 1. Leave to appeal granted. 2. Direct that the appellant file the draft notice of appeal within seven days. 3. Appeal dismissed with costs. 4. Order that the $340,000 paid into Court by Grandview be paid out to Budget. Catchwords: BUILDING AND CONSTRUCTION – statutory debt under s 14 of Building and Construction Industry Security of Payment Act 1999 (Cth) – creditor's statutory demand – suspension of work pending payment of demand – application to set aside statutory demand under s 459G of Corporations Act 2001 (Cth) – whether debtor had offsetting claim within meaning of s 459H

CONTRACTS – purported termination – whether purported termination precluded by election to affirm contract

CORPORATIONS – creditor's statutory demand – application to set aside statutory demand under s 459G of Corporations Act 2001 (Cth) – offsetting claim arising after filing of setting-aside application – Graywinter principle – offsetting claim foreshadowed by s 459G affidavit – whether offsetting claim "genuine"

PRACTICE AND PROCEDURE – funds paid into Court – discretion in relation to release of funds Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW), ss 14, 15, 27 Corporations Act 2001 (Cth), ss 459H, 459J Federal Court (Corporations) Rules 2000 (Cth) Federal Court Rules 1979 (Cth), r 36B Cases Cited: Australian Beverage Distributors Pty Ltd v Cranswick Premium Wines Pty Ltd [2004] NSWSC 877; 50 ACSR 544 Britten-Norman Pty Ltd v Analysis & Technology Australia Pty Ltd (2013) 85 NSWLR 601; [2013] NSWCA 344 Creata (Aust) Pty Ltd v Faull [2017] NSWCA 300; (2017) 125 ACSR 212 Diploma Construction (WA) Pty Ltd v KPA Architects Pty Ltd [2014] WASCA 91 Douglas Aerospace Pty Ltd [2015] NSWSC 167 Equuscorp Pty Ltd v Perpetual Trustees WA Ltd (1997) 80 FCR 296; [1997] FCA 1366; 25 ACSR 675 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 Financial Solutions Australasia Pty Ltd v Predella Pty Ltd (2002) 26 WAR 306; [2002] WASCA 51 Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd (No 2) [2018] NSWCA 341 Grandview Ausbuilder Pty Ltd v Budget Demolitions Pty Ltd [2018] NSWSC 1647 Graywinter Properties Pty Ltd v Gas & Fuel Corporation Superannuation Fund (1996) 70 FCR 452; [1996] FCA 822 Hopetoun Kembla Investments Pty Ltd v JPR Legal Pty Ltd [2011] NSWSC 1343; 286 ALR 768 In the matter of Citadel Financial Corporation Pty Ltd [2019] NSWSC 65 In the matter of Oztec Pty Ltd [2012] NSWSC 1234 Independent Portable Buildings Pty Ltd v Modular Building Systems Pty Ltd [2011] FCA 511 Infratel Networks Pty Ltd Pty Ltd v Gundry's Telco & Rigging Pty Ltd [2012] NSWCA 365; 297 ALR 372 Jem Developments Pty Ltd v Hansen Yuncken Pty Ltd [2006] NSWSC 1378; 60 ACSR 393 JKB Holdings Pty Ltd v de la Vega [2013] NSWSC 501 Motor Oil Hellas (Corinth) Refineries SA v Shipping Corp of India (The Kanchenjunga) [1990] 1 Lloyd's Rep 391 Ozone Manufacturing Pty Ltd v Deputy Commissioner of Taxation (2006) 94 SASR 269; [2006] SASC 91 Pravenkav Group Pty Ltd v Diploma Construction (WA) Pty Ltd (No 3) (2014) 46 WAR 483; [2014] WASCA 132 Re J Group Constructions Pty Ltd [2015] NSWSC 1607; 303 FLR 139 Sargent v ASL Developments Ltd (1974) 131 CLR 634; [1974] HCA 40 Scanhill Pty Ltd v Century 21 Australasia Pty Ltd (1993) 47 FCR 451 Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (in liq) [2019] NSWCA 11 Spacorp Australia Pty Ltd v Myer Stores Ltd [2001] VSCA 89; 19 ACLC 1270 Thomson v Golden Destiny Investments Pty Ltd (No 2) [2015] NSWSC 1929 TR Administration Pty Ltd v Frank Marchetti & Sons Pty Ltd [2008] VSCA 70; 66 ACSR 67 Tropical Traders Ltd v Goonan (1964) 111 CLR 41; [1964] HCA 20 Wendt v Bruce (1931) 45 CLR 245; [1931] HCA 9 Category: Principal judgment Parties: Grandview Ausbuilder Pty Ltd (Applicant/Appellant) Budget Demolitions Pty Ltd (Respondent) Representation: Counsel: V Culkoff (Applicant/Appellant) M Pesman SC, N Allan (Respondent)