G&S Engineering Services Pty Ltd v MACH Energy Australia Pty Ltd [2019] NSWSC 407

Supreme Court New South Wales

Medium Neutral Citation: G&S Engineering Services Pty Ltd v MACH Energy Australia Pty Ltd [2019] NSWSC 407 Hearing dates: 2 & 3 April 2019; further written submissions 5 and 9 April 2019 Decision date: 11 April 2019 Jurisdiction: Equity - Technology and Construction List Before: Stevenson J Decision: Interlocutory injunction to be granted Catchwords: EQUITY – equitable remedies – injunctions – interlocutory injunction – whether defendant should be restrained from calling on security surety bonds – whether serious question to be tried that bonds should be returned – whether serious question to be tried that neither first nor second defendants entitled to have recourse to surety bond

CONTRACTS – construction – purpose of security bonds – whether a risk allocation device – whether recourse to security bonds available before dispute under contract determined Cases Cited: Anaconda Operations Pty Ltd v Fluor Daniel Pty Ltd [1999] VSCA 214 Barclay Mowlem Construction Ltd v Simon Engineering (Aust) Pty Ltd (1991) 23 NSWLR 451 Birstar Pty Ltd v Proprietors "Ocean Breeze" Building Units Plan No 4745 [1997] 1 Qd R 117 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Clough Engineering Ltd v Oil & Natural Gas Corporation Ltd [2008] FCAFC 136; (2008) 249 ALR 458 CPB Contractors Pty Ltd v JKC Australia Lng Pty Ltd (No 2) [2017] WASCA 123 Eddy Lau Constructions Pty Ltd v Transdevelopment Enterprise Pty Ltd [2004] NSWSC 273 Farleigh Investments Pty Ltd v Reefking Pty Ltd [2002] WASC 115 Fletcher Construction Australia Ltd v Varnsdorf Pty Ltd [1998] 3 VR 812 Life Insurance Co of Australia Ltd v Phillips (1925) 36 CLR 60; [1925] HCA 18 Lucas Stuart Pty Ltd v Hemmes Hermitage Pty Ltd [2010] NSWCA 283 Reed Construction Services Pty Ltd v Kheng Seng (Australia) Pty Ltd (1999) 15 BCL 158 Saipem Australia Pty Ltd v GLNG Operations Pty Ltd (No 2) [2016] 1 Qd R 254; [2015] QSC 173 SMA Solar Technology AG v Beyond Building Systems Pty Ltd (No 5) [2012] FCA 1483 Texts Cited: Practice Note SC Eq 3 Category: Principal judgment Parties: G&S Engineering Services Pty Ltd (First Plaintiff) DRA Pacific Pty Ltd (Second Plaintiff) MACH Energy Australia Pty Ltd (First Defendant) MACH Mount Pleasant Operations Pty Ltd (Second Defendant) JCD Australia Pty Ltd (Third Defendant) Representation: Counsel: M Christie SC with D Hume and B Wacker (Plaintiffs) D T Miller SC with N Simpson (Defendants)